Wigan Athletic: Takeover talks with preferred bidder collapse for relegated Championship club

Championship club were relegated on Wednesday night, subject to an appeal

Mark Critchley
Northern Football Correspondent
Friday 24 July 2020 16:08 BST
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The administrators of Wigan Athletic have announced that takeover talks with their preferred bidder for the relegated Championship club have collapsed.

Negotiations will now open with the administrators’ second-choice bidder, after a total of five offers were made by interested parties.

Wigan were relegated from the Championship on Wednesday night after a 12-point deduction for entering administration came into effect, subject to an appeal.

Insolvency practitioners Begbies Traynor had announced earlier the same day that a preferred bidder had been selected to take the reins from the current owner, Hong Kong businessman Au Yeung Wai Kay.

The prospective buyer had until midday on Thursday to return a letter to the administrators with proof of their entire funds for the acquisition.

However, on Friday afternoon, the administrators said in a statement that negotiations with the preferred bidder had broken down late on Thursday due to “the bidder’s non-compliance in the first stage of exclusivity.”

“The joint administrators are now in discussions with the next preferred of the five parties that made a bid to buy the club, with a view to progressing a sale over the course of this weekend,” the statement continued.

“Until either the bidder themselves, or the Football League (EFL), elects to announce the identity of the party that is now in exclusive process to acquire the club and its assets, that will remain confidential.”

Gerald Krasner, one of the administrators attempting to save Wigan, said on Wednesday that the preferred bidder was “the best one both for the creditors of the company and for Wigan as a football club”.

Lisa Nandy, the local MP, tweeted: “This is really difficult news for staff, fans and the whole town.

“With the points appeal ongoing we really have been put in an impossible position. There has been lots of interest so no reason to give up hope. [Wigan] is a great club and should have a secure future”.

Wigan were placed in administration on July 1, despite Au Yeung's Next Leader Fund taking over from the previous owners - Hong Kong-based International Entertainment Corporation - less than a month earlier.

The appeal against their 12-point deduction is set to be heard by the EFL on 31 July, with a decision expected at some time after that date.

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