Worcester Warriors to remain in administration
Worcester Warriors is to remain in administration as the drawn out sale of the club to new owners Atlas continues.
Worcester Warriors were sold to new owners Atlas for £2.05m, according to a report released earlier this month by the club’s administrators Begbies Traynor, which also confirmed that the takeover is yet to complete in full.
The 38-page report into the progress being made by the administrators reported that Atlas Worcester Warriors – co-owned by Jim O’Toole and James Sandford – paid £2.05m for the Sixways stadium and the surrounding land.
But there is still a remaining £1m to be paid to complete the transaction and Begbies told Atlas that the fee must be received by October 9.
Begbies were appointed at Warriors following the club being placed into administration in September 2022.
Now, Begbies Traynor have said in a letter to creditors that the “period of administration has been extended”.
They must remain “in office” to receive the further payment and “subsequently make a distribution to the preferential creditor” who has given consent for the administration period to continue.
The letter confirmed that investigations into Worcester’s affairs was continuing and that work was needed to complete accounts for the first year of administration, which began in September 2022, to ensure that corporation tax “does not rank as an expense” of it.
Begbies Traynor sold the club’s P-share back to the Premiership for £9.8m.
The bulk of that money was used to pay off part of a large loan owed to the Department of Culture Media and Sport following the Covid pandemic.