Case to wind-up London Welsh adjourned

London Welsh's tax case has been adjourned until the new year
London Welsh's tax case has been adjourned until the new year
©PA

The hearing on immediate winding-up of financially troubled London Welsh has been adjourned until January next year.

The club has an unpaid tax of £90,000 and officials at HM Revenue & Customs (HMRC) had asked for London Welsh to wound up at a Bankruptcy and Companies Court during a hearing in London on Monday.

However, Registrar Christine Derrett had adjourned the case until 23rd January to give the creditors more time to decide on the course of action.

London Welsh, who are placed fifth in this season of RFU Championship entered into voluntary liquidation last week as confirmed by chairman Gareth Hawkins.

"London Welsh has reached a difficult point in its illustrious history," said Hawkins in a statement posted on the club's website.

"Due to a playing budget of £1.7million and gates at games numbering as low as 400, the club's current business model is totally unsustainable.

"The debts accrued from trading in this way have left the club with no alternative but to seek liquidation."

They were also disqualified from the British and Irish Cup after they failed to raise a side for the Saturday's encounter against Doncaster Knights.

A statement from the Rugby Football Union said: "The [British & Irish Cup] Organising Committee's decision was due to the uncertainty of London Welsh's future, its inability to fulfil the next two fixtures and the uncertainty as to whether the club would be able to fulfil its remaining fixtures."