Carlisle United were in 'clear and growing danger' before takeover

The Blues claim a "very real and significant risk" was being posed by the ongoing uncertainty over their debt position with former lenders Purepay Retail Limited.

United owed the company some £2.6m with no sign of a resolution for some time - until the Piataks bought the debt in order to seal their takeover.

The lack of a letter of comfort that Purepay would not call in the debt had seen concerns grow, United chief executive Nigel Clibbens has said.

Writing in a monthly official update to fan groups, the Blues director said the American family's takeover has now removed that uncertainty - and this has been "critical".

"Our long-term financial resilience is transformed," said Clibbens.

Nigel Clibbens with Alice and Jenna Piatak (Image: Richard Parkes)

"Critically, Purepay has been removed from involvement in CUFC. This takes away the very real and significant risk that posed.

"It means we no will longer have the material uncertainty in our accounts over our going concern that was present when Purepay would not confirm its position on debt repayment, and we faced the potential for a full repayment on demand.

"Sadly, as time progressed the Purepay situation represented a clear and growing danger to the club. It became absolutely imperative to resolve it so the deal was not derailed."

Tom Piatak snr, after confirming his Castle Sports Group business had bought the debt, claimed Purepay were "not a friend of the club".

United's debt to the latter was a legacy of their loans from Philip Day's Edinburgh Woollen Mill, before EWM went into administration during the Covid-19 pandemic and the debt was 'novated' - transferred - to Purepay, another firm with connections to EWM and Day.

Purepay figures, including former CUFC Holdings director John Jackson, have never commented publicly about the situation.

Clibbens added: "Following the takeover, our financially position day-to-day which was already sound, has been considerably strengthened and is now very strong. All creditors continue to be paid up to date including HMRC.

"The takeover saw £1.35m of new equity injected into the club. The Purepay debt was assigned to CSG [Castle Sports Group] even before the share deal was completed.

"CSG is now lender to 1921 for the ex-Purepay/EWM debt. This is now interest free.

"Options to settle the balance in a way which is beneficial and not detrimental to the club are being assessed. The outcome will be confirmed.

"The overall financial position of the club has therefore been transformed."