Source: Bournemouth_Echo
Cherries chairman: We're not out of the woods yet
CHAIRMAN Eddie Mitchell has warned Cherries supporters: We're not out of the woods.[LNB] Mitchell's message comes on the day the High Court is expected to dismiss a winding-up petition on the club, issued last month by HM Revenue & Customs.[LNB] It is likely to be set aside after Mitchell last week stumped up around £350,000 to clear tax arrears, a move that also saw the Football League ease the club's transfer embargo.[LNB] However, despite a tumultuous week at Dean Court, Mitchell insists the club is anything but financially sound and says it still has two significant obligations to meet.[LNB] He confirmed the pressing commitments were the latest instalment of a liquidation payment to creditors of the former company and rent arrears to landlord Structadene.[LNB] The liquidation payment often erroneously referred to as a CVA payment amounts to £148,000 and has already been deferred from February. It must be paid on or before April 19.[LNB] And while Cherries are currently paying full rent, the club is still in arrears after taking on an agreement, struck by its previous owners, to pay a reduced monthly amount.[LNB] Cherries' coffers will be swelled next month when they receive the latest tranche of their £431,000 annual basic award payment from the Football League.[LNB] Mitchell told the Daily Echo: The club's financial health is a lot better than it was this time last year but we've still got the last couple of hurdles to overcome and they are substantial hurdles.[LNB] They amount to between £500,000-£600,000, which leaves us a shortfall on our cash flow each month.[LNB] We're up to date with the tax but could fall behind if we don't keep up.[LNB] If we don't get our house in order, we could very easily fall back into the situation with the embargo. I wouldn't want anybody to think they could ease up because there is still a lot of hard work to be done. It's still all hands to the pumps.[LNB] Asked whether landlords Structadene were being sympathetic, Mitchell replied: They have been very patient and we're hoping it will stay that way until such time as we've got the funds to sort them out.[LNB] Mitchell is urging supporters to continue helping the club by backing initiatives such as the dedication scheme and the Don't Walk Alone' sponsored walk on Sunday, April 18. The walk takes place between Boscombe Pier and Hengistbury Head and sponsorship forms are available from the club store.[LNB] We need to keep the momentum going, said Mitchell. We need our supporters to back the sponsored walk and the dedication scheme.[LNB] The walk was the idea of one of our supporters and was a fantastic idea.[LNB] We are all working hard to get people to sponsor us, the players, the management and the board. If everybody could raise £100 or thereabouts, it would go a long way.[LNB]
