Struggling Southend United have been placed under a transfer embargo by the Vanarama National League.
A statement posted by the Blues on www.southendunited.co.uk explained;
The Club can confirm that the National League have placed us under embargo whilst we finalise the terms of a Time To Pay agreement with HMRC in relation to debt that accrued during the Coronavirus pandemic.
Like many other businesses that had reduced income during the pandemic, HMRC has agreed to allow us some time to repay historic debt.
Unlike many other clubs, we did not borrow money from the Premier League and do not have any bank borrowings. Southend has been supported by Ron and Group Companies through the pandemic.
With a reasonable approach from both parties, we hope to conclude our discussions with HMRC shortly.
The embargo is not expected to prevent signings of new players when they are identified and terms agreed.
Southend are currently hovering just above the relegation zone following Tuesday evenings 1-1 draw with Maidenhead United at Roots Hall Stadium. Kevin Maher’s side have won just four of their seventeen league matches to date and remain in danger of a third successive relegation.