Valke Rugby Company to be liquidated
The Valke Rugby Company will be liquidated due to financial distress brought about by the Covid-19 pandemic.
The East Rand outfit was set for a financial injection after entering into a partnership with the Malaysia Rugby Union to compete in the Global Rapid Rugby competition.
But the Valke said the revenue stream from their license agreement with Global Rapid Rugby stopped after the cancellation of the event.
The Valke Rugby Company is set to be liquidated as a result of financial difficulties brought about by the Covid-19 pandemic.
The union was set for a financial injection after entering into a partnership with the Malaysia Rugby Union to compete in the Global Rapid Rugby competition.
However, the pandemic has scuppered those plans and the event was halted after just one round this year.
In a statement released on Monday, the Valke said they are unable to pay player and employee salaries.
The statement read: "It is with regret and great sadness that we have to announce that the professional arm of the Valke, the Valke Rugby (Pty) Ltd, is in financial distress and the directors of the company resolved that the company be wound up as it is unable to pay creditors and employees.
"This decision was not taken lightly and the board of directors exhausted all avenues at their disposal to save the company from bankruptcy before concluding that the company be wound up."
The Valke said the revenue stream from their license agreement with the Global Rapid Rugby competition stopped after the cancellation of the event.
"Salaries of employees have not been paid at the end of July and we, as part of the Valke family, deeply regret the hardships this decision has caused to all involved. It has, however, become unavoidable. Our hearts go out to all players, employees and families of those affected during this time.
"The Valke company relayed the decision to liquidate the company to all organisations representing the employees and players of the Valke company. We as the Valke union will do our utmost to support and assist every member of the Valke family and will co-operate with all organisations involved on behalf of their members.
"The Valke Rugby Union (which runs amateur rugby) is not experiencing financial problems and all financial commitments to employees of the Valke union and its creditors are being honoured."
On the domestic front, the Valke play in the Currie Cup First Division but SA Rugby has already indicated that the event will not take place in 2020 due to Covid-19.
https://www.news24.com/sport/rugby/v...dated-20200804
