Powerleague to close 13 sites as football firm caught offside
Five-a-side football pitch operator Powerleague is to axe more than 100 jobs as it presses ahead with a site closure programme.
The group, owned by Patron Capital Partners, will shut 13 sites through a Company Voluntary Arrangement (CVA), a controversial insolvency procedure used by struggling firms to close under-performing units.
Powerleague said the move was a “last resort”, adding that it would go bust without the restructuring.
“The CVA has been designed to deliver a refinanced, restructured business without which Powerleague would not have a viable future,” the firm said.
It follows three years of declining revenues and failed attempts to raise sufficient funds to meet lease obligations.
The closures are likely to lead to the loss of 109 jobs and affected employees have been informed.
The company boasts more than 440 pitches across 50 sites in the UK and Ireland and employs some 580 people, including sports coaches and referees.
Powerleague chief executive Christian Rose, who only joined the firm this month, said: “Closing sites is a difficult decision to make and we are supporting those personally affected.
“These significant changes are essential to a sustainable future for Powerleague and I am committed to our long-term turnaround plan.”
Deloitte is handling the CVA, which will require the backing of 75% of creditors, including landlords.
If approved, Mr Rose will then oversee a “long-term business plan” with new capital investment provided through Patron Capital and its partners.
Daniel Butters, partner at Deloitte, said: “The CVA, if agreed, will provide a stable platform upon which management’s turnaround plan can be delivered.
– Powerleague clubs identified for closure under the CVA proposal are:
Leeds East (Football World)