West Ham sponsor Alpari insolvent after Swiss franc crisis
West Ham United’s shirt sponsor has entered insolvency due to fluctuations in the value of the Swiss franc.
The UK-based foreign exchange broker, which entered a shirt sponsorship deal with the Barclay’s Premier League side two years ago, was hit by the Swiss National Bank’s decision to remove a currency cap maintaining the Swiss franc at a rate under €1.20.
The move saw the franc bloat by as much as 30 per cent on the Euro, catching many trading firms off-guard. Upon entering liquidation, Alpari will fail to honour its £3m sponsorship deal with West Ham which was set to expire in 2016.
Alpari released a statement which read: “The recent move on the Swiss franc caused by the Swiss National Bank’s unexpected policy reversal of capping the Swiss franc against the euro has resulted in exceptional volatility and extreme lack of liquidity. This has resulted in the majority of clients sustaining losses which has exceeded their account equity. Where a client cannot cover this loss, it is passed on to us.
“This has forced Alpari (UK) Limited to confirm today, 16/01/15, that it has entered into insolvency. Retail client funds continue to be segregated in accordance with FCA rules.”
The 900 staff firm was established in 1998 launching its UK arm in 2004.
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