Wasps Holdings Limited is the holding company for Wasps men’s and women’s rugby teams, and Wasps netball has ceased trading; the administrators said that 167 employees have been made redundant; Wasps are the second Premiership club to go into administration this season after Worcester
Last Updated: 17/10/22 3:18pm
Wasps have been placed into administration and have immediately ceased trading, a statement from the club has announced.
Wasps Holdings Limited is the trading company for Wasps men’s and women’s rugby teams, and Wasps netball. The company has now ceased trading, with Andrew Sheridan and Rajnesh Mittal of FRP appointed as administrators.
The Coventry-based club had a debt pile that included an unpaid tax bill owed to HM Revenue & Customs and faced having to repay a £35m bond which had helped finance the club’s relocation to Coventry in 2014.
The administrators FRP said 167 employees have been made redundant, including all members of the playing squads and coaching staff.
The former Premiership and European champions had filed a notice in the High Court last month stating their intention to appoint an administrator to secure their future.
The club withdrew the men’s team ahead of last weekend’s fixture against Exeter Chiefs and the club were suspended from the Gallagher Premiership.
The club confirmed the redundancies of 167 employees, including all players and coaching staff
Rugby Football Union (RFU) regulations state that a club placed in administration during the season will be relegated for the following campaign, unless they can prove that it was a ‘no-fault insolvency event’.
This is defined by the regulations as circumstances ‘beyond the control and without the fault or negligence of the affected club’ and the club was unable to prevent with reasonable diligence. For example, the Covid pandemic or a natural disaster.
Wasps are the second Premiership club to go into administration this season after Worcester Warriors.
“Andrew Sheridan and Raj Mittal, partners at specialist business advisory firm FRP, have today (17th October) been appointed as joint administrators of Wasps Holdings Limited, the holding company for Wasps Men, Wasps Ladies, Wasps Netball, the associated coaching and support teams, and the respective Academies and Pathways. The company has ceased trading with immediate effect,” a statement read.
“Regrettably, upon appointment the joint administrators were required to make 167 employees redundant, including all members of the playing squads and coaching staff. A small number of employees have been retained to support with the orderly wind down of the company and the operation of the CBS Arena, which is unaffected by this administration and continues to trade as normal.”
Debts including unpaid taxes to HMRC and £35m to bondholders regarding ownership of the stadium have ultimately put Wasps into administration
Joint administrator Andrew Sheridan said: “This is a dark day for English rugby, and we know this will be devastating news for every Wasps player and member of staff, past players, sponsors, and their thousands of supporters throughout the world, and anyone who has ever been involved with this great club.
“Our immediate focus is on supporting those who have lost their jobs this morning. This will be an incredibly challenging time for every individual, and we will be assisting them in making claims to the redundancy payments service.
“The board and many others across the club have worked tirelessly over the last few weeks to try and find a solution that would allow the club to move forward, and it is with great regret that there has been insufficient time to allow this to happen. However, we remain in ongoing discussions with interested parties and are confident that a deal will be secured that will allow Wasps to continue.
“We would like to thank the RFU and PRL for their support to date and we continue to engage closely with them as negotiations with interested parties continue.
“Of course, time remains of the essence, and we will be doing everything in our power to progress discussions with interested parties as quickly as possible, while fulfilling our statutory duties as administrators.
“This will include discussions with Wasps FC, the amateur club aligned to the Wasps Women team to explore options that may allow the Wasps Women team to continue playing.
“Despite the challenging and complex environment, we have been heartened by the supportive approach taken by all stakeholders to date and are confident that this will continue now that the business is in administration, with all focused on securing an outcome that is in the best interests of rugby and the wider community.”
