Reading FC face potential liquidation risk as ex-chief executive takes action | OneFootball

Reading FC are facing the threat of liquidation just seven months after a change in ownership

Former Reading FC chief executive Nigel Howe has hit the club with a winding up petition just seven months after their sale to Rob Couhig.

According to The Telegraph, the Royals are now facing the threat of liquidation as a consequence of this dispute.

Previous owner Dai Yongge tasked Howe with overseeing the sale of the Berkshire outfit, which was a protracted process fraught with legal disputes.

The 75-year-old completed the deal in May after an agreement worth £25 million was reached, which ended Yongge’s controversial ownership of the League One side.

Financial mismanagement of Reading led to fears over administration, with 18 points worth of deductions being given to the club during the final years of his ownership for various EFL rule breaches.

Reading FC facing liquidation threat

Howe has handed his former club a winding up petition, as he seeks the liquidation of the Royals just seven months after the change in ownership was finalised.

Previous owner Yongge was disqualified by the EFL in March, which led to an April deadline being given for him to sell the Berkshire outfit.

Reading were in a period of exclusivity with a potential buyer, but that fell through, which led to Couhig swooping in and taking control of the club and its assets.

The American was stuck in a legal dispute with Yongge prior to purchasing Reading, having previously had a bid fall through after he’d already given the League One side a £5 million loan.

Howe had been appointed by Yongge with the task of selling the club, with this latest development potentially a consequence of these issues.

The former CEO is seeking the liquidation of Reading, who are currently 18th in the League One table.

The club have responded to Howe’s winding up petition, confirming the dispute, but refused to comment on any potential legal proceedings.

“Reading Football Club confirms that it is in an ongoing dispute with Mr Nigel Howe,” wrote the Royals in a statement, via The Telegraph.

“The club denies any claims made against it.

“Given the ongoing dispute and potential legal proceedings, the club will not be making any further comment at this time.”

Liquidation concerns threaten to drag Reading back to darker period

Reading supporters protested the ownership of Yongge, setting up an organisation known as Sell Before We Dai, and the sale of the club was a massively positive step forward for the team.

But this latest development now threatens to upend the progress that’s been made in the last seven months.

Couhig’s arrival as owner through his investment vehicle, Redwood Holdings, brought some stability to the side, even with the recent change in manager.

But liquidation could end all of that, and having to go through the courts to prevent that will bring a lot of unwanted attention back to the team.