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RIP Chester City....
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CHESTER CITY FOOTBALL CLUB WOUND UP OVER TAX DEBTS

By Stephen Howard, Press Association

A football club formed in 1885 was wound up by the High Court today as two others were given more time to avoid the same fate.

Chester City Football Club succumbed to a compulsory winding up order over £26,125 in debts owed to HM Revenue and Customs.

But fans have vowed to resurrect the club, which was expelled from the non-league Football Conference last month.

Two other clubs from the Football League - Cardiff City and Southend United - escaped being wound up by the taxman.

Both clubs were given more time by a High Court registrar to make a "full and final" payment to HM Revenue and Customs of VAT and PAYE debts.

Matthew Smith, representing HMRC, told Mrs Registrar Derrett that both clubs were insolvent and Cardiff was "robbing Peter to pay Paul" in order to stay afloat.

He said Championship side Cardiff owed around £1.9 million and League One Southend £411,000.

Lawyers for Southend agreed staff at the club had not been paid but this would be settled on Monday.

The registrar was told that Southend will receive funds soon, including £800,000 from season ticket sales.

The side was given 28 days to pay the tax debts.

Elaine Palser, representing Cardiff, said a "third party" investor would be providing the club with £6 million in funds and the tax debts would be paid.

She said the company was not insolvent and had substantial assets including £30 million worth of players and the problems had been caused by a "temporary cash flow difficulties".

Mrs Registrar Derrett gave the club 56 days to make a full and final settlement with HMRC.



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