Members of the historic Western Australian Club have been asked to support a recovery plan aimed at long-term debt reduction after the organisation’s hierarchy ruled out a number of other options focused around development of its property.
The move follows the club’s seventh consecutive net loss.
Members will be asked to pay a levy of $275 and commit to a minimum quarterly spend of $90 on the club’s food and beverage.
In a report to members in June, treasurer Bruce Land questioned the ongoing viability of the club if it did not reduce and eventually eliminate the debt on its premises and achieve an operational budget.
Mr Land reported the losses had been funded by rising levels of interest bearing debt, either from external financiers or from members’ loans and debentures.
Currently, the club’s interest bearing debt sits at $2.92 million, with only $44,000 recorded as profit before depreciation and interest to June 30 2006.
WA Club general manager and club secretary, J Michael Bryden, was confident that once the levies were introduced the club would be on the path to recovery.
He said the 1,600 members would decide whether or not to support the club when they received their membership renewals.
“We have been a self-sustaining private club for over 103 years and retaining the ownership of our clubhouse is undoubtedly our highest priority,” Mr Bryden told WA Business News.
He said the club would sell its premises at 101 St Georges Terrace only under exceptional circum-stances, but it was imperative the premises were kept for reasons of historical significance and CBD prominence.
Other options entertained by management include identifying and selling off any surplus assets, selling off surplus plot ratio, redeveloping the premises or establishing a members’ ownership trust.
All these options have been discounted by management due to inadequate feasibility.
Established in 1893, the private club was originally patronised by pastoralists and bankers before becoming an exclusive meeting place for a wide cross-section of successful professionals.
