Sheffield Wednesday hit with winding-up order

Sheffield Wednesday have been issued with a winding-up petition by Her Majesty’s Revenue and Customs (HMRC), the English League One club admitted on Friday.

The action by HMRC relates to an outstanding debt of 550,000 pounds (848,000 dollars) and the order will be heard in the High Court on August 11.

It is another blow to cash-strapped Wednesday, who were relegated from the Championship last season, but club officials insist the Yorkshire outfit is not about to be wound up or put into administration.

“We have been involved in dialogue with HMRC for a number of weeks. As such we have been somewhat surprised and disappointed by their decision to seek a winding-up order at this time,” a Wednesday statement read.

“We understand that HMRC is taking a tougher line in general with football clubs, but feel their actions are disproportionate and will raise unnecessary speculation as to the financial position of the club.

“We can inform supporters that the club, working in partnership with the Co-operative Bank and their advisors, will seek to settle this matter as soon as is practical.”

Wednesday have struggled with financial problems since being relegated from the Premier League 10 years ago.

The Owls are around 26 million pounds (40 million dollars) in debt, the majority of which is owed to the Co-op Bank, while former chairman Dave Allen is understood to be waiting for the repayment of loans amounting to two million pounds (three million dollars).

The club’s instability during the past decade has also been increased by several failed takeover bids.

Former chairman Lee Strafford quit at the end of last season amid speculation of boardroom unrest and former Wednesday manager Howard Wilkinson was installed as interim chairman.