Southend given 14 days to save themselves from administration

Southend United have 14 days to prove they have a viable financial future or the League Two club will be placed into administration by order of the high court. At the high court today, Mr Justice Newey heard evidence from lawyers for HM Revenue and Customs who asserted that Southend are "incontrovertibly insolvent". HMRC added that the club is "in persistent default" of payments as and when they fall due. Justice Newey ordered Southend to provide formal evidence of their future financial security by 22 July. The parties will return to the high court for that to be considered on 2 August. The club have relied on the support of Sainsbury's supermarket, which has entered into an agreement to purchase their Roots Hall ground. The supermarket giant is believed to have transferred over the £238,710 needed to cover the club's latest debt to the taxman. However, that has not satisfied HMRC, which revealed to the court that the club is in default of another VAT liability that was due for payment yesterday. Adding to Southend's woes is a winding-up petition relating to a debt believed to be £140,000 that was due to be heard next Wednesday.