Judge gives Southend United more time to clear tax debt but issues warning

A judge has given non-league Southend United more time to clear a £275,000 tax debt but said the club could be wound up in the next few weeks.

Sebastian Prentis considered the National League club’s case at an Insolvency and Companies Court hearing, at the Rolls Building in central London, on Wednesday after HM Revenue & Customs (HMRC) issued a winding-up petition.

The judge was told the club had other debts – owing more than £1 million in total.

He said he would have made a winding up order were he not dealing with a football club.

Judge Prentis said the case will be reconsidered on October 4 and told bosses the club will be wound up then if debts have not been paid.

Southend chairman Ron Martin told the judge a sale of the club is underway and asked for more time.

He said he is “confident” a sale will be completed by October – and money available to pay creditors – and told the judge that players and staff are being paid.

Other judges adjourned hearings earlier in the summer after being told a sale is in the offing.

“If this were not a football club, with the particular attachment to its fans … I would be winding it up today,” said Judge Prentis.

“This has got to be sorted out.”

He told Mr Martin: “You must expect, if the debts have not all been settled, that (the club) will be wound up on the next date.”

HMRC has issued a number of winding-up petitions against Southend over unpaid tax in recent years.

Southend, who dropped out of the Football League at the end of the 2020/21 season, featured in an Insolvency and Companies Court hearing in March, after HMRC issued an earlier winding-up petition over unpaid tax.

Another judge heard how that debt had been cleared.

Southend were formed in 1906.

Previous managers include England’s 1966 World Cup-winning captain Bobby Moore and ex-England defender Sol Campbell.