Southend announce takeover ahead of high court hearing
The club are expected to ask for another adjournment at tomorrows hearing
Southend have announced a takeover deal with a consortium led by Australian businessman Justin Rees has been agreed - a day before the club is due in High Court to face a winding-up petition.
A judge at an Insolvency and Companies Court hearing in August was told the Shrimpers owed more than £1million and the club were warned to clear their debt or face being put out of business.
The winding-up petition issued by HMRC was adjourned until Wednesday to allow Southend chairman Ron Martin more time to complete a sale - and his 25-year ownership of the club is now nearing an end.
However, with an estimated completion date of the start of next month for the takeover, Southend may have to seek another extension to the petition at Wednesday's hearing.
A statement on the club's website said: "We can confirm that an agreement for the sale of the club has been reached with a consortium led by Justin Rees.
"Everyone is working towards a completion date of 1 November 2023, that is when the consortium will formally take control of the club.
"The collaborative approach to agreeing this deal would not have been possible without the support of creditors and the assistance from the leader of Southend City Council.
"We recognise that this has been a stressful time for all associated with the club. We would like to thank our staff for their incredible loyalty and also thank all our stakeholders for their patience."
Southend, relegated from the English Football League for the first time in 101 years in 2021, sit second-bottom of the National League.
They were docked 10 points with immediate effect for breaching financial rules after failing to meet an August 23 deadline to pay off a £275,000 tax debt. Southend announced at the time they would appeal the deduction.