RIP Coventry City

ggggg · Post by **ggggg** » 02 Aug 2013, 13:43

The liquidators have moved in and it looks like the end, the 92 is now 91!

Yellow4life · Post by **Yellow4life** » 02 Aug 2013, 13:56

I'm not so sure about 91, I think they will survive with a 15+ point deduction, yet another championship stature club to drop into league 2 next season?

ferrarilover · Post by **ferrarilover** » 02 Aug 2013, 15:31

Ok, someone explain this to me. As far as I understand it, Coventry City FC are being liquidated. This is to say that the business is being broken up and sold off in order to recover as much money as possible to give to creditors. This includes everything from their company cars, through the players down to boxes of biros from the office.
Is this right?
If it is, how do they fulfil their fixtures?

Matt.

ggggg · Post by **ggggg** » 02 Aug 2013, 15:38

You are correct Matt, everything right down to the boxes of biros! Talk Sport earlier said they don`t understand how Cov. can fullfill their fixture with Crawley tommorow, liquidation means the place must under lock down in order to asset strip it. They won`t or shouldn`t be allowed to open the stadium, they can`t pay any wages, they won`t have a float for the turnstyles or kiosks, if this was a league 2 or below club they would be gone by now!

Richinns · Post by **Richinns** » 02 Aug 2013, 15:58

geezer - you seem to be celebrating the fact a club could no longer exist. It is a truly awful situation for their fans yet you seem quite joyful about this and then demanding that they should no longer be allowed to carry on.
Imagine if that was us? How would you/we feel?
Have a little more compassion.

ggggg · Post by **ggggg** » 02 Aug 2013, 16:18

Rich where do I appear to be celebrating? Where do I appear joyful? I`m pointing out issues that I have read and heard, I have friends that are Coventry fans and I would not wish this set of circumstances upon them, may I kindly suggest that you wind your neck back in and read what I have written in the context that I meant it to be taken! Perhaps it`s the fact that I have agreed with Matt that has thrown you!

Post by **Dave** » 02 Aug 2013, 16:25

To be honest I have little understanding of these situaions, however could it be something to do with the fact, it is actually the company that own the football club Coventry City ltd I believe that is being liquidated and not the football club.

ggggg · Post by **ggggg** » 02 Aug 2013, 16:30

Wait a minute, if a company that owns another company folds then surely the owned company is just an asset that must be valued and sold on or stripped to pay the creditors! Well that`s the way I see it or you would be able to dodge these situations by moving assets around and thus being able to put them out of touch of the liquidators, somehow I don`t see that could happen!

Post by **Dave** » 02 Aug 2013, 16:44

Again, as said I have little understanding how these things work, maybe someone who does could help us out here.

When Jessops went bust, a part of that buisness was sold to TV Dragon Peter Jones. Is the case that the football club is seen as a saleable asset of the parent company, so the liquidaters will make every atempt to find a buyer for the club, rather than just stripping it.

cambgull · Post by **cambgull** » 02 Aug 2013, 16:59

By the looks of the articles I have read, they are on the verge of liquidation. They are not actually in liquidation yet, hence why they can play against Crawley tomorrow. It would actually be in the creditors interest for games to go ahead, as the added thought that it could be the last time you see your club play will mean more people go, making more money for the club and therefore more for the creditors. Once the club is actually in liquidation, there is absolutely no way that a business could or should carry on trading.

ggggg · Post by **ggggg** » 02 Aug 2013, 17:00

I`d like to think that they could find a buyer but hasn`t that horse already bolted when they were in administration? I believe that part of the liquidation process is to asset strip because no way was found to go forward during the admin stages, as you said lets hope someone with some real knowledge of this can come on and shed some light!

Post by **Dave** » 02 Aug 2013, 18:49

From what I can gather from League 1 forum is Coventry City Ltd is the company being liquidated, the players/management contracts and training ground are owned by Coventry City holdings and company continues to trade hence why they can contiue to play.

ferrarilover · Post by **ferrarilover** » 02 Aug 2013, 22:03

So, two companies, one gone bust, one hasn't. Is this a con job or is it really that one company runs, say, the catering and has gone bust because they make a loss on selling tea and pies, whereas the 'CCFC plc' (11 men and a football) makes a profit from ticket sales etc every time they play, so they carry on trading?

Matt.

Post by **happytorq** » 03 Aug 2013, 15:04

ferrarilover wrote:So, two companies, one gone bust, one hasn't. Is this a con job or is it really that one company runs, say, the catering and has gone bust because they make a loss on selling tea and pies, whereas the 'CCFC plc' (11 men and a football) makes a profit from ticket sales etc every time they play, so they carry on trading?

Matt.

I believe it's called "creative accounting", and it's entirely legal, even if it's basically a scam.

Glostergull · Post by **Glostergull** » 03 Aug 2013, 20:46

I think you will find that if there is any legal link between both companies then there is a risk that the football side of the business will go under. It depends on how the company is formed. The main problem with the company right now is now profitability but cash flow. And liquidators will look to maximise what they can out of what time is available. I have my doubts about the club fulfilling fixtures and I have no doubt the league wanted some assurance that they would be able to or they would not have been allowed to start and been thrown out of the league altogether.

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