Miller Park Sport and Recreation Club has merged with Greta Workers Sports and Recreation Club to keep the doors open to the Branxton clubhouse.
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Boutique insolvency and advisory firm Rapsey Griffiths brokered the deal when Miller Park found itself burdened with a big renovation bill and a decline in patronage.
“We just found that we were paying interest on the loan for the building works, but not really getting anywhere,” Miller Park board member Ian Sneddon said.
“[The renovation] was a decision made by people no longer with the organisation, but something the current board was having to deal with.”
The Miller Park board engaged Rapsey Griffiths to review its options 12 months ago.
“I really didn’t want the club to shut,” Mr Sneddon said.
“I had essentially put my [truck driving] business on hold for 12 months to try to see this through.”
Rapsey Griffiths helped the board determine that it was not possible for the club to trade its way out of difficulty even with the firm’s guidance.
Instead they sought expressions of interest on an amalgamation.
“We undertook a review of the club’s financial situation and they were right to be concerned,” Rapsey Griffiths partner Chad Rapsey said.
“In order to help the board with this process we facilitated the expressions of interest for amalgamation and assessed the offers that came in.”
Greta Workers was the preferred partner and a deal was brokered.
The Independent Liquor and Gaming Authority approved the application in July.
“To be honest it was touch and go for a while,” Mr Sneddon said.
“We have a new chef in the bistro who is bringing in new punters and the board feels more confident about where we will be in 12 months time.”
The Branxton clubhouse now trades as Miller Park Sport Club and is managed by Greta Workers Sports and Recreation Club.
Insolvency options
Turnaround – A specialist is appointed to see if a club has the expertise, appetite or cash resources to trade its way back.
Amalgamation – A financially viable club is sought to acquire the troubled club’s assets and liabilities.
Voluntary administration – Also known as a deed of company agreement. The club’s board appoints an administrator if it determines it is insolvent.
Liquidation – A person is formally appointed to wind up a club and pay debts through asset sales.