Gateshead saved as US investors complete takeover

The future of National League club Gateshead looks to have been secured following the completion of a takeover by a US private investment group.

Flacks Group, who specialise in purchasing distressed companies and assets, will become the new owners subject to approval from the Independent Football Regulator.

The takeover had previously looked close to collapse when the group revealed an issue with a third party, Shoreline Limited, who had previously attempted to buy the Tyneside club.

Co-owner and director Mark Nellist withdrew his funding at the end of September and players and staff were late having salaries paid for that month and for October and there were also serious HMRC debts outstanding.

However, concerns for the immediate survival of the club have been eased by the takeover news.

"Exciting times lie ahead as we learn of Flacks Group's plans for the club and seek to turn a disappointing start to the season around with the appointment of a new manager," said, external interim chairman Graham Wood.

"Staff and players have now been paid and funds are in place to satisfy HMRC and other creditors."

Gateshead are currently bottom of the National League with just four points from 15 games and are without a manager after Lee Cattermole was sacked early last month.

They have lost their last nine in the league, are 13 points adrift of safety and were thrashed 5-0 by eighth-tier Stafford Rangers in the FA Cup.

A victory over Stoke City Under-21s in the National League Cup on Tuesday was their first in any competition for 19 matches stretching back to August.

One of the first tasks for the new owners will be appointing a new boss, while another stated aim is to grow the support at the Gateshead International Stadium, with average crowds this season just 643.

They will hope to cap a new era with better attendances later this month when Barrow and Hartlepool United will be the visitors.

"Gateshead Football Club now has a bright future," said Wood. "We now look to the townspeople of Gateshead to embrace the opportunity, get behind the club and swell the numbers of our loyal fanbase."