Closure of Shrewsbury's Powerleague site moves step closer

It will mean the loss of 10 jobs.

A proposed Company Voluntary Arrangement (CVA) to restructure Powerleague, one of the UK's biggest operators of five-a-side pitches, has been approved by its creditors and shareholder.

It means the business will now look to implement its long-term business plan, which will see it close 13 of its sites, including the one next door to Shrewsbury Town's Montgomery Waters Meadow stadium.

All creditors were invited to a meeting where they voted on whether the proposal for a CVA issued by the company should be approved.

The business will now look to implement its long-term business plan with new capital investment being provided through Patron Capital and its affiliates. The process is being led by CEO Christian Rose, CFO Mike Evans, and the existing management team.

Refinancing

The company has more than 440 pitches across 49 sites in the UK, Ireland and the Netherlands. It directly employs over 580 people at its sites and head office, and has contracts with a number of sports coaches and referees across all locations.

The CVA has been designed to rationalise the company's leasehold obligations and facilitate the refinancing and restructuring of the business, without which Powerleague would not have had a viable future, the firm said.

The company proposed a CVA as a last resort following three years of declining like-for-like revenues, and failed attempts to turn around the business through alternative means.

Following a comprehensive review of the business, the directors identified 13 sites for closure, which is likely to lead to the loss of 109 jobs nationwide. It is anticipated that the 13 sites scheduled for closure will remain open until at least the end of January 2019.

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

CEO Christian said: “Today’s positive news means we are one step closer to restructuring Powerleague with the necessary investment. It is clearly a very difficult time for those whose jobs are affected and we will continue to offer them our support.

“These significant changes are essential to a sustainable future for Powerleague. The CVA is our last chance to rescue the company, and I am absolutely committed to our long-term turnaround plan.”