Leicester City woes continue

Leicester City have applied to the High Court to go into administration.

The First Division club’s finances have been a serious concern since they were relegated from the Premiership last season.

The Foxes last week agreed a wage deferment package with their players to cut costs.

A club statement read: “The company and its directors announce that a unanimous decision has been made to petition the High Court for Leicester City Plc and its wholly-owned subsidiaries Leicester City Football Club Plc and Leicester Developments Limited to be placed in administration.

“Unfortunately, immediate creditor pressure and the inability to reach agreement with all major creditors have meant that a restructuring outside administration has not been possible despite the best efforts of the directors.

“The directors believe that administration should give the club sufficient protection to enable the restructuring which they have endeavoured to conclude over the last three months to be concluded.”

City are the latest in a long line of clubs to feel the pinch due to the downturn in the football economy over the past year.

The club’s Plc chairman Greg Clarke revealed that they had come close to reaching agreement with creditors after meetings over the weekend but late problems left administration as the best option.

He said: “Whilst this is a severe setback for the club it does not mean the end of Leicester City.”