Social Club - closure advice

[downturn]

Hi
I'm new to the forum and seeking advice.

I am a member of a small social club that has been struggling financially for the last 2 years or so (as many have been).

There are approx 120 members, and over the years there have been various committee members who have eventually thrown the towel in, new committees have been formed but again failed due to fall outs between them. We now only have a committee of 4 people but as there's nothing really to plan or discuss anymore as all avenues of bringing money in have been exhausted, the club merely opens and closes and whatever is in the till at the end of the week pays the bills - we have one employee - the steward. Due to his good nature and need for a job, he has taken on more or less everything - he deals with the day to day running of the club, pays all the bills (in consultation with the two signatories on the check book) and has worked himself into the ground to keep things ticking over.

Unfortunately, due to lack of custom, it now looks like the club can no longer survive - there are debts of around £20K - all legitimate and a constant worry - and if the club remains open all that will happen is that the debts will increase.

The debts are PAYE (£5K)- which the club has been trying to catch up on for the past 2 years - unfortunately the money has run out and the club can't pay it, the 'time to pay' has been revoked (even after begging for more time/reduced payments) and a final demand was received a couple of months ago. VAT (£5K). Brewery (£5K) and £2K that is owed to the steward for unpaid wages/holiday pay and the bond that he initially paid when he started the job. A few other bills are outstanding but none of major concern as they are quite small amounts.

As far as we are aware, the club is owned by the members.

The steward has said that he can't make things work any longer, the members are all at a loss - what to do about closing no-one seems to know.

Any advice/questions welcome thanks

Downturn

 

[Billmccallum]

sent you a PM

 

[AlanGNW]

As far as we are aware, the club is owned by the members.

I'd say checking up on that is the first step, whether you are going to fold it or come up with an alternate solution - presumably there must be some sort of documentation....?

A couple of possible alternatives to consider.

Friends of ours bought their local village pub along with other local residents which seems not uncommon these days. Whether they own it or not have a look at possible ways to raise funds from the members. If it is possible to go down this route it is likely to encourage use of the club by its members if they feel a sense of ownership.

Or perhaps talk to the brewery (is the club tied?). With 20k debts and 5k owed to them (which they are likely able to write off) - raising 15k from them doesn't seem an awful lot of money to keep open. Additionally if you can persuade them to invest in some form you may also be able to convince them its worth their while to provide some form of expertise to recover the business.