Boro to fold - administrators claim

SCARBOROUGH Football Club will be wound up at the end of the season, according to administrators dealing with its debts of around £2m.

Shareholders received letters from corporate rescue and recovery firm Begbies Traynor yesterday which said the club will not take part in competitive football next season.

Administrator Rob Sadler said in the letter he believes the deal to save the club by selling its McCain stadium for housing and moving to a new ground at Eastfield is unlikely to come off before the company voluntary arrangement expires on April 13..

Begbies Traynor now intends to petition for the club to be wound up.

News of the letters spread like wildfire among loyal fans a few hours before the side slumped to a 3-1 home defeat to Nuneaton.

Supporters' club chairman Stuart Canvin said: "They might have well have deducted three points from us today before kick off."

Boro now only have four matches left in the season to escape relegation from the Conference North to the Unibond League.

Fears have now been raised the club's fate may be sealed regardless of the results on the pitch if it cannot take part in any competitive football.

Boro fan and shareholder Neil Daniel, 28, who went to his first match is his pushchair, said the McCain loyal would be enormously sad and upset if the club closed for good.

He said: "The team is fighting relegation and now it seems that it doesn't matter what they do on the pitch. From what the letter says it seems that there won't be a club at all next season, even if they are relegated to the Unibond - as that is still competitive football."

Only weeks ago supporters had reason to celebrate after collected thousands of names from across the world on a petition calling on Scarborough Council to lift a covenant on the McCain Stadium sayingit could only be used as a sports ground, which blocked the Eastfield move.

The council then decided to life the covenant.

Boro sources have suggested the club could be set up under a different company name next season to allow football to continue, and that is only the Conference as an organisation which can ban them from playing, not the administrator.

The letter from Mr Sadler says: "It is now apparent that, despite the endeavours of all parties concerned with the stadium move from the company's present premises at Seamer Road, Scarborough, to the proposed new site at Eastfield, the contractual issues will not be resolved before the expiry of the arrangement.

"Whilst undoubted progress has been made by the company's directors towards the club's move having previously discussed this matter at length with the major creditors it is not the intention of the joint supervisors to seek a further extension to the arrangement's duration.

"Enclosed with this letter is a default certificate that has been issued in accordance with the terms of the arrangement on the basis that there is

no longer a reasonable likelihood of the purpose of the arrangement being achieved.

"The joint supervisors will now petition for the compulsory winding up of the company.

"Pursuant to rule 4.7 (10) of the insolvency rules 1986 the joint supervisors give notice of their intention to seek their appointment as joint liquidators of the company.

"Creditors should state any objections in writing, to the joint supervisors in the next 14 days.

"It is with much regret I must advise that the club will not now take part in competitive football from the 2007/2008 season.

"Creditors will be aware the company has been subject to various insolvency proceedings dating back to 1999 and concerns have been periodically expressed about the company's long term viability.

"I understand, however, that it is the company's directors' intention to have the club complete its remaining fixtures."