Darlington fans launch £750,000 shares issue to save Quakers from closure (From The Northern Echo)

Darlington fans launch £750,000 shares issue to save Quakers from closure

8:30am Thursday 16th February 2012 in Darlington By Joe Willis, Regional chief reporter

TIME TO ACT: Administrator Harvey Madden gives a press conference on the latest developments regarding Darlington FC

A WEBSITE – buydarlo.org – will go live this morning giving football fans the chance to buy shares in a new company.

Darlington FC 1883 Ltd has been formed to allow the community to come together and buy Darlington Football Club – in the process preventing its 129-year history from coming to an abrupt end.

Shares will cost £100, with 10,000 issued in total.

The first 5,000 will be offered on a two-for-one basis, meaning if all shares are sold the new company will have raised £750,000.

Members of Darlington Football Club Rescue Group (DFCRG), who are behind the newly-formed company, believe that even if only £600,000 is raised, the club will have a viable future.

Doug Embleton, from the rescue group, which has now been wound up following the launch of the new company, said last night: “We’ve had Save Darlo – it is now time for Buy Darlo. We want this town and the football community to pledge and give their money to buy this football club and give it a future.

“We believe this target is a very manageable amount.”

The company hopes the sale of the first block of shares would allow it to start negotiations towards agreeing a company voluntary arrangement with creditors, meaning the club could be taken out of administration.

A total of £70,000 has been raised and handed over to administrator Harvey Madden, giving the company exclusive rights to buy the club.

Announcing the deal yesterday at a press conference at the Darlington Arena, Mr Madden said the club was facing liquidation because no buyer had come forward and the Wrexham game had been cancelled because of the weather.

However, he said: “Following meetings last Friday, which continued this week, I can announce that I have granted a period of exclusivity to allow a prospective buyer to seek to raise the necessary finance to purchase the business and assets of Darlington Football Club Ltd as a going concern.”

According to the administrator, although the target was £750,000, he believes the community buy-out would be viable if £500,000 or £600,000 was raised.

Giving the club until April 30 to raise the money, Mr Madden said it was now vital that fans bought shares and continued to attend home games.

He added: “Now that we’ve got a possible way forward, we need the solidarity of all the fans’ groups.”

Interim manager Craig Liddle has expressed concern that players are not being paid, however Mr Madden said he had paid players on a match-by-match basis and would attempt to “enhance” payments if possible.

“There is still a long way to go to save this football club,” the administrator added. “We still need help from everywhere and anybody we can, and we need to raise a lot.”

The rescue group has been in talks with Mr Madden for more than a month.

It is thought any takeover by the community would be dependant on outgoing chairman Raj Singh agreeing to waive about £2m he is owed by the club. Mr Madden said it was his understanding that Mr Singh was supportive of the community group buy-out.

He has previously said he would walk away without his money if it meant the club’s survival. The Echo was unable to contact him last night.

The rescue group has received help to launch the shares issue from Crowdcube, a firm specialising in raising finance for businesses and community groups.

DFCRG, which formed the new company, includes Mark Meynell, the leader of a previous consortium that tried to buy Quakers, former chairman Steve Weeks and former Darlington Supporters’ Trust chairman, Pete Ashmore.

A plan was suggested last week by Darlington Supporters’ United, with help from independent community ownership organisation Supporters’ Direct. But, it is hoped all groups will unite behind the new firm.