US group named as preferred bidder for Sheffield Wednesday

Billionaire businessman David Storch is leading the bid

A group of US-based investors have been selected as the preferred bidder for collapsed Sheffield Wednesday. The club’s administrators at Begbies Traynor have chosen Arise Capital Partners LLC, led by aviation businessman David Storch, Michael Storch and investor Tom Costin.

Arise is said to have supplied a substantial deposit and evidence of funds in its bid to buy the club, which collapsed into administration last year. Their move has pipped rival bidder and former Newcastle United Mike Ashley.

Administrators say Arise has entered into an exclusivity agreement under which it will fund the club’s trading losses after eight weeks if the deal is not completed in that time. Documents show creditors of the club are owed more than £80m. The offer from Arise – which comes after a previous preferred offer led by James Bord was pulled – is less than the amount needed to pay creditors 25p in the pound..

Begbies Traynor said “Whilst the offer does not deliver the same level of creditor return as the previous proposed transaction, it nevertheless represents the best available outcome currently achievable and provides a clear pathway toward securing the club’s long term future.

“Our focus remains unchanged: to secure a responsible sale of the Club, protect its future and achieve the best possible outcome for creditors.”

Owls manager Henrik Pedersen met with Mr Storch and Mr Costin ahead of the club’s 1-1 draw with Watford. He said: “They are some very friendly and very interesting people. There was not (a massive amount) of details but the energy was good and they are interesting, very interesting people.

“So I have a very, very positive feeling about it.”

David Storch added: “We are thrilled and excited to take this important step toward stewardship of this historic football club. As we continue through this process, we are looking forward to working with the local community, engaging transparently with fans and embarking together on this journey to restore Sheffield Wednesday to its rightful place.

“We are absolutely committed to delivering a brighter future for our fans and bringing joy back to Hillsborough.”

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