The Valke Rugby Union's professional arm liquidated as Covid-19 speeds up its demise
To be fair‚ the writing had been on the wall for some time and when the Covid-19 pandemic struck it expedited the demise of the professional arm of the Valke Rugby Union.
The union that is made up of clubs in the Ekurhuleni and Vaal regions will continue to operate but its professional arm has been liquidated.
Their imminent demise was foreshadowed last week when it was revealed that their players’ salaries would not be paid.
“It is with regret and great sadness that we have to announce that the professional arm of the Valke‚ the Valke Rugby (Pty) Ltd‚ is in financial distress and the directors of the company resolved that the company be wound up as it is unable to pay creditors and employees‚” the union said in a statement.
“This decision was not taken lightly and the board of directors exhausted all avenues at their disposal to save the company from bankruptcy before concluding that the company be wound up.
“Salaries of employees have not been paid at the end of July and we‚ as part of the Valke family‚ deeply regret the hardships this decision has caused to all involved. It has‚ however‚ become unavoidable. Our hearts go out to all players‚ employees and families of those affected during this time.”
With all forms of rugby suspended from the middle of March and no First Division competition to play in this year‚ the Valke‚ like all the other smaller unions‚ have struggled to make ends meet. Even their offshore interest in the form of a license agreement with Global Rapid Rugby competition had been curtailed.
“The Valke company relayed the decision to liquidate the company to all organisations representing the employees and players of the Valke company. We as the Valke union will do our utmost to support and assist every member of the Valke family and will co-operate with all organisations involved on behalf of their members‚” read the statement.
“The Valke Rugby Union (which runs amateur rugby) is not experiencing financial problems and all financial commitments to employees of the Valke union and its creditors are being honoured.”