Club Rose Bay has succumb to creditors, with receivers Cathro & Partners engaged to take control of the RSL club’s assets.
The long-standing RSL boasts sweeping views of Rose Bay Harbour, offering a family-friendly venue equipped with wide-ranging amenities including a kids’ play area.
After efforts to salvage its finances beyond the pandemic were insufficient, in August the Club voluntarily appointed SV Partners’ Hugh Armenis and Jason Lloyd Porter as administrators. A meeting with creditors was held 27 August, according to Australian Securities and Investments Commission (ASIC) documents.
SV Partners worked with the club’s management and continued to trade as they explored scenarios for its future.
With this in mind, the grand opening of the new Italian bistro, an instalment by Villagio, went ahead on 29 August.
But the optimism was quashed when a creditor called in debt, appointing receivers Cathro & Partners, led by Simon Cathro and Andrew Blundell.
C&P opted to immediately cease trading, dismissing the roughly 20 casual staff and closing the doors after taking control of the club’s assets.
Financial documents show the RSL lifted revenue in 2023 to a loss of $41K – being a notable improvement over the $363K loss in 2022. However, this is a false indicator, given the P&L details ‘other revenue’ including $404K from the ‘sale of property, plant and equipment’, revealing a further fall in actual revenue.
This statement concluded the club’s net assets fell more than $40K for FY23, to $359K.
Simon Kanan, who co-owns the chain of restaurants named Villagio expressed his dismay on Instagram, lamenting that “everything was going great” and customers and sales were up, until the doors were closed.
He disclosed that his company was not informed of the level of financial strife the club was experiencing, but hopes it will not be permanent.
“Fingers cross, they can sort this shit out,” he said. “And then … we’ll see you in Rose Bay.”
Villagio also has outlets at the Richmond Club, Club Blacktown, Merrylands Bowling Club and West Ashfield Leagues Club, which all continue to trade as normal.
Cathro & Partners were contacted for comment on plans for the receivership, which may include the sale of assets and dissolution of the club, but did not respond in time for publication.
