Row erupts over bid to resurrect London Irish
London Irish administrators and former frontrunner Daniel Loitz are at loggerheads over the breakdown of the German’s proposed deal to buy the stricken rugby club.
Sources close to the deal claim that Loitz had months – including an exclusivity period – in which to finalise a purchase with the ReSolve Group, which was appointed when former owner Mick Crossan put London Irish into administration in 2023. Both ReSolve Group and Loitz have previously confirmed that proof of funds were supplied.
Loitz, who proposed to buy the west London side and their sought-after training ground through his firm, Hokulani Limited, strongly denies this and says the terms changed.
“The challenges and irregularities we have encountered have made it untenable for us to continue,” Hokulani Limited said in a statement on Loitz’s social media this week. “We refuse to engage in a process that feels increasingly like a game, and we step away with heavy hearts but firm resolve.”
ReSolve ended up taking a lower offer for the club’s IP from Eddie Jordan’s Strangford Ellis Ltd consortium, managed by Jordan Associates. Jordan’s bid does not include the Hazelwood training centre.
Formula 1 entrepreneur Jordan’s group could return to negotiations for the training centre having purchased the club, which was put into administration by Crossan with debts of around £30m.
It is understood that sports clubs including Chelsea have held discussions surrounding Hazelwood, which has been used as a base for travelling NFL teams in the past, but ReSolve has refused to confirm.
London Irish battle
The administrators did say, however, that “after the passing of so much time they had to transact with a party ready to transact”.
ReSolve added that it “had to make a decision, not in isolation” and that “Strangford had been diligent the whole time”.
“Hokulani Limited formally announces its decision to withdraw from the acquisition process of London Irish [IP and Brand] and the Hazelwood training ground, despite our longstanding interest and confirmed status as the ‘preferred bidder’ presented to the creditors, supported by two certified proofs of funds,” added Loitz’s post.
“The administration, now extending beyond 18 months, has been technically appointed by a secured creditor, Powerday PLC. While we respect the complexities of such proceedings, the lack of transparency and consistency has been deeply frustrating.”
The outcome leaves London Irish in a position to return to professional rugby, though Jordan’s consortium has mooted a potential look towards the United Rugby Championship rather than the English pyramid.
Daniel Loitz told City PM: “[I give] all the best from the bottom of my heart to the London Irish supporters as well as Mr Jordan and his fellow investors.”
The future of the Hazelwood training facility remains uncertain, though London Irish Amateur RFC have a lease for the location, something any new owner – Strangford Ellis Ltd or otherwise – will need to consider.
Michael Lynch, restructuring and insolvency partner at law firm DMH Stallard, said: “The purchase of ‘London Irish’ out of administration is a real boon for the rugby community and for the locality of wherever the club bases itself; it may also prove to be a benefit to the creditors of the London Irish entity, in administration.
“The purchase of the ‘London Irish’ intellectual property and rights generally shows that, even after nearly two years since entering administration, value can be found out of a formal insolvency process.
“Even when the end of London Irish looked certain, the insolvency regime in this country, often unfairly maligned, can allow businesses central to the community to rejuvenate and reform.”