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Sport News: Valke Rugby Company files for liquidation due to Covid-19.

Sport News: Valke Rugby Company files for liquidation due to Covid-19.

The Valke Rugby Company has become the first COVID-19 casualty in the South African rugby fraternity after they confirmed filing for liquidation with immediate effect, The South African reported.

The Valke Company had recently joined the money-spinning Global Rapid Rugby competition in Malaysia. A Valke team based in Kuala Lampur consisting of some of their best South African players coupled with local talent were scheduled to play in the competition in March.

The cancellation of the inaugural Global Rapid Rugby competition due to the coronavirus pandemic was the final nail in the their coffin according to the club.

VALKE COMPANY FILE FOR LIQUIDATION

“It is therefore 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,” a statement from the company said.

“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 novel coronavirus has claimed another victim, after the Global Rapid Rugby competition played in Malaysia was cancelled due to the ban on travelling and the revenue stream from license agreement was stopped.”

UNABLE TO PAY SALARIES

“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 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, the amateur arm that runs rugby in the East of Gauteng remain unaffected by the financial situation at the Valke Rugby Company.

 

Photo Credit: dreamstime


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