Today, a meeting of creditors of Sandgate R.S.L. Memorial Club Inc (trading as Club Sandgate) appointed Raj Khatri and Morgan Lane of Worrells Solvency & Forensic Accountants (Worrells) as liquidators of the Club.
Sandgate R.S.L. Memorial Club Inc (the Club) had been subject to a Deed of Arrangement (DOA) with its creditors from September 2015 until today. The Club was in operation for over 50 years and its board comprised of volunteers elected by its members.
In June 2015, Worrells was appointed provisional liquidators and subsequently voluntary administrators while terms for the DOA could be reached with creditors. Under the DOA, control of the Club and its day-to-day trading returned the board. The DOA also provided for employee superannuation and redundancy paid in full, some unsecured creditors paid in full, trade creditors and the Australian Taxation Office (ATO) paid in part satisfaction of its debts. The DOA had approximately 2.5 more years to fulfil its terms.
Over the last two years, the Club had been unable to meet all its ongoing tax obligations when they fell due and consequently entered into a number of repayment agreements with the ATO. The Club’s most recent repayment agreement submission to the ATO was not accepted, causing the Club to default on the DOA. Today creditors resolved to terminate the DOA and place the Club into liquidation.
Following the creditors’ meeting, the Club’s board executives and Worrells have closed the Club and ceased trading from today.
Worrells will work with the neighbouring bowls club that has its grounds leased under the Club’s entity. For bowls club patrons, a valid lease and associated public liability insurance must be in effect for it to operate.
Worrells appreciates the liquidation will affect its members, the board, creditors, and the community.
Worrells Partner, Morgan Lane, said, “We are saddened to see the Club’s need to close its doors, particularly after the prospects and stakeholder support for a deed of arrangement with creditors was successful in 2015.
Unfortunately, the clubs industry in recent years is particularly susceptible to a changing market and increasing economic pressures.”
Any parties interested in acquiring the Club’s assets, premises, or entitlements (licences) can contact the Worrells Brisbane office on 07 3225 4300 or brisbane@worrells.net.au.
Worrells has 26 offices nationally, across Qld, NSW, ACT, Vic, SA, and WA. Worrells has provided solvency management, insolvency administration, and forensic investigation services for over 40 years.
—ENDS—
Contact:
Morgan Lane
Partner, Worrells Brisbane
07 3225 4330
morgan.lane@worrells.net.au