Birmingham City FC parent company enters receivership

Birmingham International Holdings Limited has entered receivership the club has confirmed.

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By :  ,  Financial Analyst

The future of Birmingham City Football Club has been thrown into doubt once again after the club's parent company was placed into receivership.

Birmingham International Holdings Limited (BIHL) has been in control of the Championship club after taking over in October 2009 but the ownership has been plagued with problems. Former chairman, Hong Kong businessman Carson Yeung, is currently in prison after being convicted of money laundering.

This latest incident has seen BIHL appoint three receivers from Ernst and Young but stated that it was not in liquidation and Birmingham City would be able to fulfil its fixtures in the league. BIHL reassured supporters "most emphatically" that no winding-up petition had been filed and blamed "fractious and inharmonious relations within the management" as the reason behind the receivership.

In a statement to the Hong Kong stock exchange, BIHL said: "BCFC [Birmingham City] naturally recognises the impact which this announcement may have on itself and how it may be interpreted by its supporters, staff, media and the wider domain.

"The club therefore wishes to explain why the majority directors on the board of BIHL had deemed it necessary to take this voluntary but unusual course of action."

Ernst and Young stressed that its role with BIHL did not extend to Birmingham City which "continues to trade as normal".

Brighter signs on the pitch

On the pitch, Birmingham have been performing much better in recent months. Despite a dreadful start to the 2014/15 campaign, which included an 8-0 humiliation at home to Bournemouth in October, the club has managed to rally under new manager Gary Rowett.

The Blues currently sit in 13th place in the Championship seven points away from the relegation zone. Under Rowett's stewardship, the club has stabilised and is now looking for a strong end to the season and build for a promotion push next season.

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