NORTHWICH Victoria ran out of money to pay their bills this week, entering administration for the second time in less than five years.

Owner Jim Rushe told the Guardian he had no alternative following the club’s relegation from the top tier of non-league football last month.

“I’ve not made this decision lightly,” he said.

“But it’s a move I had to make in order to safeguard the club’s future.”

An administration order was made on Friday morning after Rushe called on Lancashire-based insolvency experts Refresh for help.

Daniel Hennessy will now run Northwich Victoria Football Club (2004) Limited.

He said: “I can assure supporters that our aim is to find a way forward for the club so that they can continue to watch their team play in the town next season.”

Rushe estimates Vics’ tax bill to be around £400,000.

He says he has paid, along with former backer Nick Bone, £175,000 to HM Revenue and Customs (HMRC) since buying the club from Mike Connett in December 2007 to reduce the it’s arrears to the public purse.

“We’ve entered into administration voluntarily,” he said.

“The company was vulnerable to action from creditors and this allows us to find a solution that is to the long-term benefit of Northwich Victoria Football Club.”

Under both FA and Football Conference rules he must pay football-related debts, such as wages to players and backroom staff or transfer fees, first and in full.

Rushe told fans at a supporter club meeting on Thursday that he will meet a deadline of May 31 to pay his out-of-pocket first team.

Meanwhile HMRC is not a preferential creditor and has to line up with other non-football parties to share what is left.

At other clubs the tax man has typically been paid less than 10 per cent of what is actually owed.

“I’ve been left with no choice given the circumstances the club finds itself in following relegation from the Blue Square Premier,” added Rushe.

“Crowds have been dropping for some time too, further reducing our main source of income.”

He will now work with Hennessy on a rescue plan.

The most likely exit route is through a Creditors’ Voluntary Arrangement (CVA); a legal agreement about how the debt will be repaid.

It usually amounts to paying creditors a fraction of what they are owed.

That of course, is if they agree.

HMRC presented a petition to the wind up the club in September last year, a case that has currently been adjourned until the end of this month.

But, with Northwich Victoria Football Club (2004) Limited now subject to an administration order, the tax man can not pursue that claim.

Vics, who entered administration in September 2004 under Steve Burr, are likely to start next season in the Blue Square North on minus 10 points.

The Football Conference will decide the severity of their on-the-pitch punishment at its annual meeting on June 13.

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