Five-a-side football provider to close 13 sites

Five-a-side football pitch operator Powerleague is to close 13 sites. The company, owned by real estate investor Patron Capital Partners, has filed a proposal to restructure its business through a Company Voluntary Arrangement. Powerleague owns nearly 50 sites, covering 6.7m sq ft, across the UK and Europe. The company said it has proposed the CVA “as a last resort”, following three years of declining like-for-like revenues and failed attempts to raise sufficient funds under the current lease terms. “Without an approved CVA, Powerleague will not be able to secure the additional funds that the business needs and will most likely result in the company going into administration.” Powerleague chief executive Christian Rose said: “Closing sites is a difficult decision to make and we are supporting those personally affected. “These significant changes are essential to a sustainable future for Powerleague and I am committed to our long-term turnaround plan.” The company has held constructive initial discussions with landlords and subject to approval of the CVA, it is anticipated the 13 sites scheduled for closure will remain open until at least the end of January 2019. All creditors will be invited to a meeting which is expected to be held on 16 October, where they will have the opportunity to vote on whether the CVA should go ahead. If the required majority of creditors approve the CVA (75% approval is required), the meeting will be followed by a 28-day statutory appeal window for any legal or procedural challenges. The business will then implement its long-term business plan with new capital investment being provided through Patron Capital and its partners. The process will be led by Rose, CFO Mike Evans and the existing management team. Deloitte has been nominated to act as supervisor to the CVA. Beast from the East The company was among multiple football operators hit by March’s ‘Beast from the East’ storm in the UK, which disrupted pitch availability and reduced sales. In April 2017, Powerleague held merger talks with rival Goals but called time on the discussions a few months later. The news comes after a string of CVAs, predominantly in retail, including Office Outlet, House of Fraser, Byron, Carpetright, Homebase, Mothercare and New Look. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette