The Bundanoon Club could soon be closed permanently.
The club was recently closed on a temporary basis and a meeting will be held on February 26 for members to decide its future.
A letter was sent to members to inform them of the meeting. It said the board of directors believed the best option would be to close the club permanently and sell its assets to pay all creditors.
This is one of three options members will be able to vote on at the meeting.
But chairman of The Bundanoon Club Steve Granger said he hoped this would not be the case.
“We all hope that we can try and save the club. That’s our priority,” he said. “The resolution [to close the club] is if all else fails. Our main concern is to try to do something.”
The decision to look at options for the club’s future came after the board of directors contacted ClubsNSW to seek advice. As a result of this, the decision was made to close the club while options were explored.
The other two options to be discussed at the meeting are:
- To sell the club’s gaming machines and negotiate with council for the sale of the freehold property in order to pay for the club’s liabilities and create a cash reserve to allow the club to continue to trade providing only food and beverage services with voluntary labour.
- To levy members and negotiate the sale of the club’s freehold property to create a working capital fund to pay outstanding liabilities and introduce new strategies to create a viable trading platform.
According to the letter, there were several reasons why the board recommended the third option to close the club, including that the club is currently unable to pay its debts which total close to $140,000. The letter stated running the club on a voluntary basis would likely still result in a negative cash flow.
Only financial members will be admitted to the meeting, where they will be able to discuss and cast a vote on the proposed options.
The suggestion that the club be closed is a special resolution – in order for it to pass, it will require a three-quarter majority vote of all members present at the meeting.
Members have until the end of Friday, January 17 to contact Mr Granger with further options.
Suggestions can be sent to email@example.com or to PO Box 101, Bundanoon NSW, 2578.