Business club goes into administration
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The Western Australian Club, which has been running since 1893, has been placed in the hands of administrators, one week after another historic icon - West Perth Football Club, founded in 1885 - took the same path.
FTI Consulting’s Daniel Woodhouse and Ian Francis were appointed as voluntary administrators of the business networking club last Friday, July 27.
Mr Woodhouse said the WA Club’s executive committee had been working to lift membership, which currently stands at about 450 people.
The committee had also been seeking to renegotiate lease commitments at the club’s premises at 12 St Georges Terrace.
“The WA Club is a very well-known fixture of the business community in Perth, and there have been significant efforts under way by the executive committee in the areas of membership recruiting, overall membership engagement and negotiations regarding lease commitments for the club venue,” Mr Woodhouse said.
“Unfortunately, a point has been reached where the lease commitments are an issue for the club, and the breathing space afforded by the appointment of voluntary administrators is needed to determine if the club can be placed on a sounder financial footing. “
The appointment comes 11 years after the club sold its premises at 101 St Georges Terrace to stave off financial pressures faced at that time.
The club sold the heritage building to one of its members, Tony Priolo, and leased the ground floor and basement areas.
It used the proceeds to repay debts and create a multi-million dollar investment fund to try and secure its long-term future
The club left 101 St Georges Terrace in early 2015, shifting to its current penthouse home at 12 St Georges Terrace.
Established as the Exchange Club in 1893, its current name was adopted in 1897.
West Perth football club has similar longevity.
It has played under its current name since 1891 but traces its origins back to 1885 when Victorian Football Club was established.
The board of West Perth football club agreed to appoint Richard Tucker and John Bumbak from KordaMentha as voluntary administrators on July 24.
The club is carrying debts of $790,000 but is continuing to play with support from the WA Football Commission.
Its major creditors include state government agency VenuesWest, which runs the football club’s home ground at Arena Joondalup.
The WAFC has provided a $250,000 loan to Korda Mentha, which will manage the club during the voluntary administration process.
The loaned funds will be quarantined to support West Perth players and staff to enable their ongoing participation in the 2018 WAFL premiership season and will not be used to pay down West Perth’s existing debts.