Sainsbury’s plans to build one of the UK’s biggest superstores on the site of Southend United football club’s stadium has saved the club from administration.
This afternoon, lawyers for HM Revenue & Customs (HMRC), who had applied to the High Court for an administration order against the club over an allegedly unpaid tax bill, agreed to the dismissal of the application following negotiation with the club.
Catherine Addy for HMRC told Mr Justice Newey that it had agreed to the dismissal despite “some concerns about funding arrangements.”
She told the court “if there should be further default, and those instructing me sincerely hope there wont be, then those instructing me will be back to court again for an administration order.”
In response, Hilary Stonefrost for the club said that the development with Sainsbury’s had been held back by the financial crisis but that the club had paid £2.5m of its debts to HMRC.
“We hope the arrangements with Sainsbury’s will provide a secure financial footing for the future,” she said.
It is envisaged that Sainsbury’s plans will fund a new 22,000-seat stadium for the club.
christian.metcalfe@estatesgazette.com
To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
