Royal Croquet Club’s future in doubt after Chinese expansion fails, leaving it owing creditors $280,000
EXCLUSIVE: THE future of the Royal Croquet Club is in doubt after the popular Fringe venue’s expansion to a Chinese beer festival led to a huge loss and a creditor’s demand for $280,000.
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THE future of the Royal Croquet Club and its international ambitions are in doubt after the popular Fringe venue’s expansion to a Chinese beer festival led to a “significant” financial loss and a creditor’s demand for hundreds of thousands of dollars.
Lauded by Premier Jay Weatherill and Adelaide Lord Mayor Martin Haese as a coup for the state that would put “Adelaide in front of millions of people”, the rebranded Royal Adelaide Club was scheduled to run for 24 days at the Qingdao International Beer Festival in Shandong last August.
But attendances fell “well short” of the one million people projected by the Qingdao Government and the second year of the two-year deal is “no certainty”.
The company managing the project, The Royale Adelaide Club, has been served with a demand to pay $279,456 to an unidentified creditor. It is now being restructured in a bid to secure the future of the Royal Croquet Club event.
RCC director Tom Skipper admitted on Thursday that the company was in financial straits.
“While a great critical success, the Royal Adelaide Club activation suffered a significant financial loss, with visitor numbers far, far lower than promoted by the Chinese organisers,’’ he said in a statement.
“We also didn’t receive the on-site support we expected. As we understand it, there has been a change of government in Qingdao and there is no certainty South Australia will have the opportunity to have a presence at the next beer festival.”
The Government tipped in $600,000 to the $2.4 million cost of the project over two years. The Adelaide City Council was also involved. Lord Mayor Martin Haese said the event would be “phenomenal for the brand of the city”.
Mr Skipper said that since the Qingdao event “we have been working non-stop to repay creditors — which don’t include the Adelaide City Council or the State Government”.
“We have covered more than half those debts — and firmly believe we can come to an agreeable resolution with the rest,” he said.
“As part of this effort we are currently restructuring our business to ensure events like the Royal Croquet Club will go ahead. We believe we will have the new structure in place in the next week or so.’’
A State Government spokesman said on Thursday night that it had a sponsorship agreement with the Royale Adelaide Club for its activation at the Qingdao Beer Festival in 2016 and 2017.
“The 2017 event is scheduled for August and as such at this point there is no money owed to the State Government,” he said.
Last September, The Advertiser reported that Mr Skipper said the attendance at the Chinese event was “well short” of the one million people projected by the Qingdao Government, but it was still a success.
“For what it generated in terms of trade and tourism, it has been amazing,’’ he said at the time.
He said his company Social Creative had funded “most of” the $2.4 million and had managed to “break even” on the project, in contrast to his statement on Thursday that the company had suffered “a significant financial loss”.
Mr Skipper and fellow director Stuart Duckworth have had success in Adelaide with other venues such as Little Miss Miami and Little Miss Mexico.
The Royal Adelaide Club showcased SA brands including Burger Theory, craft brews and Adelaide universities.
The Adelaide Fringe said in a statement it was not owed any money by the RCC.
“The Royal Croquet Club has been a vibrant and valuable part of the Adelaide Fringe for the past few years and we hope that is the case in 2018,’’ Adelaide Fringe chair David Minear said.
“Venue registrations don’t open until July, so early in the second half of the year we will
know their plans for 2018.”
Adelaide City Council said it was “not in a position to comment on outstanding moneys from any of its contracting parties, as such information would be deemed commercial in confidence’’.
The Royal Croquet Club, which operated in Victoria Square, has suffered criticism for drawing festival-goers away from bricks and mortar venues.
It moved to a new site on the banks of the River Torrens this year in a bid to alleviate those issues.
Are you owed money by the Royal Croquet Club? Contact cameron.england@news.com.au