123-year-old club sold and avoids insolvency
By Alistair Dunsmuir
A 123-year-old golf club in Nottinghamshire has been purchased by an inheritance tax and estate planning specialist, ensuring it avoids insolvency and that its members each receive a significant dividend.
Newark Golf Club has been acquired by Stellar Asset Management, at least the fourth golf club it has purchased in the last few years, ensuring that 20 jobs have been saved.
This deal has not only secured the future of the historic golf club and saved jobs, but, unusually, it will also deliver a significant dividend to its 400-plus members.
Earlier this year, the directors of the club, which was founded in 1901, recognised that its funds were not sufficient to undertake the substantial improvements needed to update the 18-hole course and clubhouse, threatening its ability to continue to operate without becoming insolvent.
“The key aspect of this project was the swift recognition of the impending financial issues by the directors,” commented Bob Maxwell of Begbies Traynor. “We were able to ensure that the club continued operating while we sought a solution which met the needs of the members and also enabled them to stay in control of the process.
“By completing a sale, not only have we been able to safeguard the future of this historic golf club in the hands of an experienced new owner, but, uniquely, there will be a return back to members, as shareholders, once the creditors have been repaid. It has also secured the jobs of the 20-strong team at the club.
“This was a very unusual sale due to the pay-out of a dividend to shareholders, and was only possible due to the members and committee taking swift action before an insolvency became inevitable.”
By Alistair Dunsmuir
Write a comment
No Comments
View comments
Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.
Write a comment