Gateshead FC's prospective owners, The Flacks Group, have made a final appeal to several parties to help save the National League club from insolvency, as HMRC prepares to issue winding-up proceedings over unpaid PAYE and VAT believed to exceed £200,000.
The club has been told it must pay the full amount or agree a repayment plan by Wednesday, or HMRC will issue a formal demand warning that could push Gateshead closer to going out of business.
Takeover stalled by Shoreline dispute
The US-based Flacks Group agreed a takeover deal with Heed shareholders last month and have been working with the Independent Football Regulator (IFR), the National League and the EFL to conclude the agreement. However, an ongoing disagreement between Shoreline, who failed to conclude a takeover deal for Gateshead last year, and the club's shareholders has brought matters to a standstill.
Chronicle Live understands an offer has been put to Shoreline to resolve the issue over the last 24 hours that falls short of the total of the 'certain financial sums' they are looking to recover from Gateshead shareholders, and that offer has been rejected.
Local MP offers to broker agreement
Gateshead have received offers of support from local Labour MP Mark Ferguson, who offered to act as 'an impartial broker' between Flacks Group, Shoreline and shareholders to broker an agreement.
In a statement, Ferguson said: "I'm really concerned we could lose Gateshead FC. Following the worrying reports that HMRC has contacted the club about overdue tax payments, I've written to Flacks Group, to Shoreline and to those responsible for running Gateshead FC.
"I've offered to act as an impartial broker and get everyone round the table. I'm asking them to take up that offer urgently. We owe it to the players, the staff and everyone who loves this club to do everything we can to save it. The only thing that matters is that Gateshead Football Club survives."
Chronicle Live has also reached out to North East mayor Kim McGuinness for comment. A spokesperson for the North East Mayoral Strategic Authority said: "The Mayor recognises how important Gateshead FC is to its supporters and the wider community.
"Mayor Kim will be following up with the club and Gateshead Council to ensure supporters have a voice, are meaningfully engaged and kept informed as the situation develops."
Flacks Group appeals for 'sensible resolution'
The Flacks Group, who have received support from Gateshead's players, staff and the Gateshead FC Supporters Society, are keen to kickstart their ownership of the club and have been working on a number of potentially exciting appointments. However, they will be unable to move forwards with those plans unless an agreement can be found.
They have now appealed to Shoreline, Gateshead's previous shareholders, the EFL and the IFR to 'achieve a sensible resolution' and rescue the club. In a statement released to Chronicle Live, Flacks Group spokesman Phil Forster said: "In the spirit of maintaining open and transparent dialogue with all stakeholders of Gateshead FC, we wish to update you on where matters stand as the club reaches a critical stage.
"The club was notified yesterday that HMRC will commence winding up proceedings unless serious progress in stabilising its financial position is achieved by this Wednesday. Flacks Group is ready to provide HMRC with the assurances it needs to safeguard the club, but we can only do this if the ambiguity over ownership of the club is resolved.
"To that end, we have today appealed to Shoreline, the club's previous shareholders, to the Independent Football Regulator and to the English Football League to work with us to achieve a sensible resolution. We believe this is eminently possible although we have also to recognise that time is moving against us and a breakthrough is required urgently."
As it stands ahead of a critical 24 hours, Gateshead FC will move closer to the brink of going out of business over the coming days if no agreement can be found between the parties involved or the issue over unpaid tax payments fails to be resolved.
