Carlisle United Could Cease To Exist Before The End Of This Season

[Dick Large]

Preamble
A significant percentage of folk who see a long email or a long internet forum post
will tend to ignore it. We have short attention spans. But I urge all genuine
Carlisle United supporters to read this post because the club is in its biggest
ever crisis .... and I am well aware of all the other crises that have occurred.

History
We know that in March 2017 the club's financial position must have been dire because
the club got a loan from Edinburgh Woollen Mill Limited, believed to be interest free
but on the strictest possible terms. The club's owners must have had no other choice
because these terms were such that all the club's assets were used as security for it.
Thus a failure to repay it on demand would lead to Edinburgh Woollen Mill Limited owning
sufficient of the club's assets to pay it off. Furthermore the three Holdings directors
who, in concert, own almost 75% of Holdings which owns 93% of Carlisle United FC 1921
Limited have given personal guarantees to pay the loan off. I believe that these guarantees
had to be given in order for the loan to occur but they were given in the naive belief that
they would never be exercised. In the last accounts the value of that loan was £2.89 million
and we can assume that this figure has not diminished. The plain fact is that the club does
not have assets to the value of £2.89 million. A few folk may dispute this but we will deal
with that separately on another occasion.

Crisis
The Carlisle United FC 1921 Limited loan is from Edinburgh Woollen Mill Limited, which is one
of at least 12 subsidiary companies of Edinburgh Woollen Mill Group. The group is now in a
terrible financial state such that the owner Philip Day is likely to passively let the
majority of its companies go into administration and then into liquidation. Those companies
that are viable will continue in business. The problem for 1921 is that Edinburgh Woollen Mill
Limited went into administration on November 7th. At this point I am cautious. I cannot, for
possible legal reasons, state that Edinburgh Woollen Mill Limited is heading into liquidation.
All I can say is that it would be unwise to park your car in an Edinburgh Woollen Mill limited
car park because it may well be taken away.
In the event of Edinburgh Woollen Mill Limited being liquidated it would be the duty of the
liquidator to secure all the company's assets into his / her ownership and to arrange for their
values to be realised, in terms of cash, for the benefit of the company's creditors. The 1921
loan is an Edinburgh Woollen Mill Limited asset. It would be the duty of the Edinburgh Woollen
Mill Limited liquidator to call in the entire value of this loan, in the first instance on
the club's entire assets and then on the personal guarantees of the three Holdings directors.
Thus a liquidation of Edinburgh Woollen Mill Limited is a liquidation of Carlisle United 1921 Limited.

There are possibilities that some sort of intervention could prevent this cataclysm from occurring
but currently the course of events indicated above is likely to happen.

Who is making this public and demanding information?
Nobody on either message board or social media is showing any interest whatsoever in this matter.
The local printed, internet and broadcasting media may well be asking questions but they could make
it clear that they are asking questions. It is the duty of anyone who is a Carlisle United supporter
to demand information by telephone, email, letter to the 1921 Chief Executive
([email protected]) and the owners of the club. The owners of the club do not have
club email addresses (at least not in the standard club format) and you will also have difficulty in
contacting them by fixed line telephone at Brunton Park. Andrew Jenkins is known to be a gentleman
who always replies to postal letters.