Begbies Traynor Group

Begbies Traynor LLP appointed as WRFC Trading Limited administrators

Date Published: 27/09/2022

Julie Palmer, Julian Pitts and Andrew Hook have been appointed as Joint Administrators over WRFC Trading Ltd (“the Company”) on 27 September 2022. The Joint Administrators act as agents of the Company and without personal liability.

In addition, Julie Palmer, Julian Pitts and Andrew Hook have been appointed as Fixed Charge Receivers over Sixways Stadium, Warriors Way, Hindlip, Worcester WR3 8ZE (“the Stadium”).

Should you have any queries please contact the Joint Administrators via email at [email protected]. Please note that we are not instructed over any other entity connected to Worcester Warriors including WRFC Players Ltd but we are working with all stakeholders to try and ensure the ongoing success of the rugby club.

Q – What is an administration and the role of the Joint Administrators?

A – An administration is an insolvency process used by companies that are unable to pay their debts as they fall due. An automatic moratorium has been placed over the Company as a result of our appointment. This means that no creditor can take legal action against the Company (to include taking action against its assets) except with leave of the court or the permission of the Administrators.

Q – What is my position if I am owed money by the Company?

A – If you are owed money by the Company you will be classed as a creditor and will have a claim in the insolvency procedure, notice of which will be sent under separate cover by Monday 03 October 2022. If you have not received a copy of this notice please contact the Joint Administrators via email at [email protected] to ensure we have your contact details.

Q – How much money am I going to get back, and when?

A – This will be dependent on asset realisations and the potential sale of Worcester Warriors rugby club. The Joint Administrators are now working hard with various stakeholders to achieve a rescue of the rugby club and will endeavour to provide updates whenever possible. Unfortunately, at present we are unable to estimate what payment will be available to creditors of the Company and when.

Q – I have purchased a season ticket, can I get a refund?

A – The Joint Administrators are urgently reviewing position regarding season tickets in light of the Administration appointment and the club’s suspension by the RFU.

Q – I have purchase a ticket to attend an upcoming rugby game, can I still attend?

A – The RFU have suspended the club from all competitions with immediate effect. Please do not travel to the Sixways Stadium or any scheduled away venues as no Worcester Warrior matches are currently being held.

Q – I have booked a non-rugby event at Sixways Stadium and paid a deposit. Will my event be going ahead or can I obtain a refund?

A – The Joint Administrators are assessing all operations of the club, including whether they’re able to continue to run non-rugby events. Please contact the Joint Administrators via email at [email protected] to confirm whether your event will be held as planned.

If the event is not able to be run by the Administrators then you will be a creditor for any money paid. Unfortunately, the Administrators are unable to offer any refunds to customers should the events be cancelled.

Q - I have paid money for an item at the Worcester Warriors shop, but not received it yet. Will I receive the item?

A – The Joint Administrators are urgently reviewing the position regarding pending orders that have not been fulfilled. Please contact the Joint Administrators via email at [email protected] with details of any orders you have not received.

Q – What will happen to the rugby club?

A - The Joint Administrators will be entering into urgent discussions with all interested parties and relevant stakeholders to try and achieve a rescue of the rugby club. We appreciate that it has been and remains an extremely difficult time for all parties involved with the club including its players, employees and fans. We will endeavour to provide updates whenever we can.

Q - Will the club have points docked or be relegated as a result of this administration, like Football clubs do?

A – The RFU regulations include various sanctions for a club which enters into Administration. The Joint Administrators have entered into discussions with the RFU regarding potential point deductions and relegation from the Gallagher Premiership. The outcome of these discussions will be reported to the public in due course.

Q - How will you keep us informed of the progress in finding a buyer for the club?

A – Updates in relation to the potential rescue of the rugby club will be available upon conclusion of negotiations with interested parties. All negotiations with interested parties will be confidential until this point.

Q – I have supplied stock to the club subject to retention of title. Can I recover my stock?

A – Your first port of call should be to contact the Joint Administrators via email to [email protected] to make us aware of your potential claim. These claims need to be dealt with quickly so you will be issued with a questionnaire to complete so you can provide evidence supply and the retention of title clause. The claim will then be assessed by the Administrator for validity. So as to assist us in dealing with the matter as soon as possible, please provide us with copies of the relevant invoices together with a copy of the contract with the Company when you contact us.

Q – The club has ordered goods from me but these have not been delivered. Should I still deliver the goods?

A – Please do not fulfil any orders placed by the club before our appointment unless you receive our written confirmation that the goods are still required.

With effect from the date of our appointment, the club will not be responsible for any payment for goods and services delivered to it except against orders which bear the Joint Administrators’ signatures, or one of their authorised representatives. All such authorised orders will be paid for in accordance with your normal trade terms, unless otherwise agreed with you.

Q – Will the affairs of the club be investigated?

A – The Joint Administrators have a statutory duty to report to the Insolvency Service on the directors’ conduct. In addition, the Joint Administrators have a duty to carry out investigations into certain transactions which may have occurred prior to our appointment. We will review the Company’s affairs to ascertain the asset position of the Company including any claims arising from any transactions entered into the Company prior to administration. If you have any areas of concern, please provide these in writing with evidence to the Joint Administrators via email at [email protected] so this may be investigated further. Please note that this is standard conduct on all insolvencies and we are not implying any wrongdoing by the directors. Please note that the contents of our report to the Insolvency Service remains confidential.

Q – What is the role of a Fixed Charge Receiver?

A – A fixed charge receivership is a process where a fixed charge holder appoints a Receiver to take control of the asset subject to their security and to sell it on behalf of the lender to repay its debt. The Receivers have been appointed over the Stadium to realise it on behalf of the secured lender.

Q – How does the appointment of a Receiver affect me?

A – Sixways Stadium Limited continues to operate as usual and you should contact the Company through its usual communication channels. The Receiver will deal with the Stadium in conjunction with the Administrators of WRFC Trading Ltd to try and achieve a rescue of the rugby club.

About The Author

Meet the Team

Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor. Julie is a member of the Insolvency Practitioners Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.

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