CHESTER CITY were thrown into further turmoil this weekend when it was announced that they have entered financial administration.
City were relegated to non-League football for the second time in nine years at the beginning of this month, when they mustered the lowest number of points by any club in Coca-Cola League Two.
The troubled Deva Stadium outfit have been teetering on the brink of administration for months, with Chester’s financial problems being highlighted by a transfer embargo that hung over the club for the majority of last season, and many reports to the media by players alleging non-payment of wages.
Such was the parlous state of the club’s finances that on numerous occasions during the course of the woeful campaign that has just finished, City were regularly forced to utilise YTS players to make up their squad.
A statement from Chester City announced the inevitable. It read: “After discussions with owner Stephen Vaughan, Chester entered voluntary administration in order to safeguard the club’s future.”
Insolvency experts Refresh Recovery Limited from Skelmersdale have been appointed as administrators, and the accountant who will be handling matters on a daily basis is Martin Shaw.
He said: “Supporters can be assured that our aim is to find a new owner for the club, so that professional football continues to be played in Chester from the start of the new season.
“In order to achieve this, we need first to find a new buyer able to invest heavily into the club, and then to obtain the approval of the club’s creditors to the sale.
“We are already talking to potential purchasers of financial substance, and as time is short, I would urge any other parties seriously interested in buying the business to make contact with us sooner rather than later.”
Chester, if they are accepted into the Blue Square Premier league at next month’s AGM, are likely to begin the new season in August on minus 10 points.
Following the announcement of administration the club’s major shareholder Stephen Vaughan said: “I can assure Chester City supporters that it has been done in the best interests of the club.”