Kirribilli Club shuttered following appointment of administrators
The Kirribilli Club - an ex-service club with some of the best harbourside views in Sydney - has been shuttered, with the future of the site now in question.
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The Lavender Bay-based Kirribilli Club has been shuttered by administrators, with the future of its privately-owned harbourside site now in question ahead of a creditors’ meeting on Friday.
The ex-service club, which received its charter in 1943 and has more than 18,000 members, was placed in administration on June 19, with administrators SV Partners continuing to trade the waterfront venue while they assessed the state of the business.
The club includes the Lavender by the Bay restaurant, the Sunset Cafe, and other bar and events spaces.
The administrators have now decided to cease trading ahead of a creditors’ meeting to be held this Friday.
“After an initial period of trading in which to urgently assess the status of the Kirribilli Club, it is with regret that a decision has been made that the Kirribilli Club will cease to trade as from Monday, June 24,’’ SV Partners said in a statement.
“The administrator is aware of the significant impact that the closure of the Kirribilli Club will have on staff and members, and also the local community and the clients who have booked events at the venue.
“The administrator recognises the emotional and financial hardship that this closure will cause to many people and will work closely with the staff and management of the Kirribilli Club to ensure a smooth and orderly transition, and to assist those affected clients as much as possible.’’
SV Partners said it would be contacting all affected clients in coming days.
The club’s board has been searching for a new home for the club, after last year attempting to raise money from members to either buy the building or bankroll a relocation.
Club president Lukas Bendt told News Corp Australia in May that one of the reasons for the club’s financial woes was an increase in rent, however owner Scott Staniforth, managing director of Stadia Capital which owns the site, said at the time that the club’s rental agreement has increased 3 per cent in line with the current lease agreement.
Stadia bought the venue for $22.85m in 2022, and currently owns it through a single asset fund.
“The property commonly known as The Kirribilli Club is located at Milsons Point, NSW,’’ Stadia’s website says.
“The property has commanding views of the Harbour and is zoned B4 which provides a multiple of uses. The asset is currently leased to the Kirribilli RSL with 2 years remaining on the lease.’’
Mr Staniforth has been contacted for comment.
The Kirribilli Club’s financial statements for the 2022-23 financial year showed it staged a significant recovery to generate $9.6m in revenue, up from $4.9m, however its full year loss increased from $991,000 to $1.3m.
The club’s current liabilities outweighed its current assets by more than $700,000, and over the year its net asset position had deteriorated from $276,409 to negative $1.03m.
The club forecasted another loss for this current financial year in that report, and said “the need to renegotiate the club’s lease within the next 12 - 18 months, creates further uncertainty as to the future of the club.
“These events and conditions indicate the existence of a material uncertainty in relation to going concern which may cast some doubt as to whether the club will continue as a going concern.’’
A creditors’ meeting will be held on Friday, June 28.
Originally published as Kirribilli Club shuttered following appointment of administrators
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