Rescue deal for SPFL club Dumbarton FC collapses due to buyer's health problems

A deal to save one of Scotland’s oldest football clubs has collapsed after administrators revealed the proposed buyer had withdrawn his offer.

Dumbarton appointed administrators last November, when the club’s directors said they were left with no option after failing to receive money owed from the sale of development land in 2021.

A £90,000 fundraising campaign helped through an initial financial crisis when there was no money to pay wages, and affairs were put in order while discussions took place over a deal to save the club.

Administrators Quantuma recently agreed on a proposal that would see the League 1 club exit administration with all creditors paid in full.

The deal, which was expected to be concluded quickly, would have brought to an end the ongoing legal action surrounding the club and the ownership of its stadium.

It would also have ensured sufficient funding was in place to run Dumbarton for the next three seasons.

That deal has collapsed, with Quantuma saying proposed buyer Gareth Phillips has pulled out of buying the club for health reasons.

However, they say they have spoken to other “credible parties” and are hopeful of finding an alternative to save the club.

Quantuma managing director and joint administrator of Dumbarton Football Club (“the club”) Ian Wright said: “On April 15, Craig Morrison and I, together, the joint administrators of Dumbarton Football, announced that we had agreed Heads of Terms with Gareth Phillips, in a deal which would see the club exit from administration.

“With regret, today I must announce that due to ill health, Mr Phillips has had to withdraw his offer and in doing so has forfeited the non-refundable deposit which was paid.

“We are fortunate to be in a position where we have other credible parties who had expressed an interest in acquiring the club out of administration. We have already engaged with these parties and will provide a further update as soon as we are able to do so.”