‘Sadness and frustration’ – EFL chairman confirms takeover collapse days after sudden manager exit
Shrewsbury Town's proposed takeover has fallen through, plunging the club into turmoil.
The League One side were closing in on a deal to be bought out by an American entrepreneur.
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The deal was believed to be virtually completed as the buyer moved towards the end of their exclusivity period.
Shrewsbury had been waiting to hear from the prospective new owner to progress to the next stage - the EFL's fit and proper person's test - however, it never progressed that far as an application has not yet been submitted.
The club, though, had received renewed interest from other parties over the last couple of months but haven't engaged due to the exclusivity period of the American entrepreneur.
They will now be free to enter negotiations with prospective buyers once again.
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It's the latest issues surrounding the League One club who appointed Michael Appleton as boss until the end of the season.
The Shrews were rocked by the sudden departure of Gareth Ainsworth, who left to join Gillingham - a side playing in the division below Shrewsbury.
Chairman Roland Wycherley told the fans: “It is with deep sadness and frustration that I write to you, our supporters, for the second time in just seven days.
“Following the unexpected departure of Gareth Ainsworth last week, I promised to keep you informed about the exclusivity period we entered with a prospective new buyer.
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“Unfortunately, I must now share the disappointing news that this exclusivity agreement ended on Monday, March 31, without resulting in a completed sale.
“I know this will be a major disappointment to our supporters.
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“It is bitterly disappointing for me.
“And both the board and I feel deeply let down by how events have unfolded over the past few months.
“Back in September 2024, we entered our first-ever exclusivity period with an overseas investor to facilitate the sale of my shares in the football club.
“This would give the buyer of my shares control of the club, training ground, land and all other assets associated to STFC.
“From a Shrewsbury Town perspective, all due diligence was completed before Christmas 2024, ensuring the best possible chance for the new owner to have an impact in the January transfer window.
“However, as with any sale, completion depends on the buyer’s willingness to complete.
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“Unfortunately for STFC, we understand our prospective owners remain embroiled in a lengthy and complex legal dispute unrelated to football. Their ongoing situation has demanded much of their time and attention, preventing them from dedicating the necessary focus to acquiring the club.
“As a result, we are no longer in an exclusivity period. While this is hugely disappointing, we thank our potential investors for their time and efforts.
“I want to reassure supporters that the search for new investors has already resumed today, with fresh expressions of interest received as early as this morning.
“As I have said in prior statements, previously my intention has been to find a successor who was a local businessman who had the club’s and the town’s best interests at heart.
“Over the years, I twice believed I had found the right local investor, only for both parties to withdraw from the process after agreeing to the asking price.
“This time, we appointed an intermediary with a track record of success in selling football clubs to help us secure a new buyer.
“And when we entered into exclusivity, we were optimistic about the future.
“I understand that some supporters may see this as another potential takeover that hasn’t come to fruition. However, I want to emphasise that this was the first time we had entered into an exclusivity agreement with an overseas investor.
“All the work needed on our side had been completed, which leaves us in a better position for the next potential investors as we have already finalised the vast majority of any due diligence a buyer would ask us to complete.
“Despite this setback, I remain fully committed to finding the right successor.
“The reality is that football has moved on. The era of a local businessman running clubs at this level is coming to an end.
“From the beginning of this process, we committed to keeping supporters informed whenever legally possible.
“Until yesterday, we were bound by non-disclosure agreements, and I regret having to bring you this news.
“Nobody likes uncertainty and I understand the concern and worry among supporters – something that isn’t helped by people who decide to spread rumours and misinformation.
“The club always intended to write to supporters today.
“But due to a newspaper leak on Sunday, the board arranged a meeting with a variety of supporters last night in order to dispel as much misinformation as possible.
“As someone born and raised in Shrewsbury, and as a lifelong supporter of this club, I will continue to do everything in my power as Chairman to act in the best interests of STFC.”
Shrewsbury are in deep trouble on the pitch as well, sitting bottom of League One.
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As it stands, Appleton's side are eight points from safety with just eight matches remaining.
It means that they face the ultimate battle to preserve their League One status and avoid relegation to League Two.
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