New low for crisis-hit Hatters

[Olzy]

Struggling League One outfit Luton Town have been placed into administration, resulting in an automatic 10-point deduction in League One.

Insolvency specialists, The P&A Partnership, confirmed the news on Thursday evening after the club's directors were advised the Hatters could not continue functioning in their current state.

P&A Partnership spokesman Brendan Guilfoyle said: "Administration will give the club breathing space and an opportunity to restructure its finances.

"Our aim is to maximise the value of the company's assets and to place the club on a firm footing for the future."

More than 50 charges were levelled against the club, former and current club officials and six agents by the Football Association regarding payments to agents last week, and directors John Mitchell and Richard Bagehot stepped down on Wednesday.

With administration comes a 10-point deduction, which will see the Hatters drop down to bottom place in the League One table.

Guilfoyle added: "We feel for the fans, the manager and the players as in the short term the club will suffer a points deduction from the Football League but hopefully the long-term prospects will overcome the short-term disadvantage.

"The Hatters is a great football club with more than 100 years of history behind it and it needs your support now more than ever."

The administrators are looking for prospective buyers to put proposals to the creditors by the end of next month, while Guilfoyle has also confirmed that the FA charges are not affected by the administration.

In order for the club to continue trading in the short term, chairman David Pinkney has agreed to fund trading losses until the conclusion of a sales process.

"This is a sad day for me personally, I have only ever had the long-term future of Luton Town Football Club at heart," said Pinkney.

"Changing circumstances and the potential huge liabilities surrounding the club have presented me with no alternative but to place the club into the hands of the administrator.

"As a further commitment to the supporters and the future of the club, I have however, decided to fund the overheads of the club throughout the sale process without any guarantee of recovering these moneys.

"I sincerely hope a potential purchaser can be found to take on Luton Town Football Club and secure its future.

"The club now, more than ever, needs its supporters to put past differences behind them and get behind both the team and all the staff at the club.

"I regret that given the current circumstances I am unable to make any further comment to the media at this time."