10 jobs under threat as Powerleague set to close Shrewsbury five-a-side site

The site, next door to Shrewsbury Town's Montgomery Waters Meadow stadium, is one of 13 sites earmarked for closure, which is likely to lead to the loss of 109 jobs nationwide.

The company is doing it through a controversial insolvency arrangement after seeing its business hit by the inclement weather as the Beast from the East gripped the country earlier this year.

Powerleague trades from about 50 sites across Britain, and competes with rivals including Goals Soccer Centres, which is listed on the London Stock Exchange

It directly employs over 580 people across its sites and at its head office, and has contracts with a number of sports coaches and referees across all locations.

The company, which is owned by the real estate investor Patron Capital Partners, is examining a Company Voluntary Arrangement (CVA) in an effort to secure financial concessions from creditors.

The company said it has proposed a CVA as a last resort following three years of declining like-for-like revenues, and failed attempts to raise sufficient funds under the current lease terms.

Without an approved CVA, Powerleague will not be able to secure the additional funds that the business needs and will most likely result in the company going into administration.

Informed

Any employees who will be affected by these closures have been informed of the proposed changes.

The company said it has held constructive initial discussions with landlords. Subject to approval of the CVA, it is anticipated that the 13 sites scheduled for closure will remain open until at least the end of January 2019.

All creditors will be invited to a meeting likely to be held on October 16 at which they will have the opportunity to vote on whether the CVA should go ahead.

If the required majority of creditors approve the CVA, the meeting will be followed by a 28-day statutory appeal window for any legal/procedural challenges.

The business will then implement its long-term business plan with new capital investment being provided through Patron Capital and its partners.

Powerleague CEO Christian Rose 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 has been nominated to act as supervisors to the CVA.

Daniel Butters, partner at Deloitte, added: “The CVA, if agreed, will provide a stable platform upon which management’s turnaround plan can be delivered.”