February 18 – The parent company that owns second-tier English side Birmingham City has gone into voluntary receivership because of internal strife, another stark example of the struggles that can afflict clubs below the top flight.
Birmingham said in a statement they wished to reassure supporters and staff “most emphatically” that no winding up petition had been filed and therefore they were not in liquidation.
“Birmingham City FC can fulfil its obligations as a member club of the Football League and shall continue to maintain a strong dialogue with the board of the Football League on this matter,” the statement said.
“With no apparent resolution to the fractious and inharmonious relations within the management, the majority on the Birmingham International Holdings Limited (BIHL) board decided it had no other option but to openly and voluntarily request reputable receivers to take over management on its behalf.
“Receivers will be able to manage the day-to-day activities of BIHL, take control of its finances, carry on the business of the company and take such steps as may be necessary for the purpose of preserving the future of Birmingham City. The board is committed to working in unison and in full co-operation with the receivers to find the best way forward for the greater good of the club.”
Although the club said it was “business as usual”, the latest incident marks another serious step in a long line of problems for both the club and its parent company that have seen it suspend trading in shares, receive takeover offers and rack up losses.
In January, the Football League wrote to the club seeking clarity over former owner Carson Yeung’s role. The Hong Kong businessman was convicted of money laundering in March 2014 and jailed for six years.
Contact the writer of this story at moc.l1734925811labto1734925811ofdlr1734925811owedi1734925811sni@w1734925811ahsra1734925811w.wer1734925811dna1734925811