Restaurant at Club Rose Bay, Villaggio, breaks their silence after sudden closure

On Thursday night they held a grand opening with free pizza and pasta, but by Friday morning, Club Rose Bay was closed. What’s next for Villaggio now?

The brand new restaurant which become a victim of Club Rose Bay’s sudden closure has vowed to stand by the club.

Villaggio Restaurant is a separately run business which was brought in by the eastern suburb club to help turn the club’s financial’s around after having successful locations at clubs across Western Sydney.

However they were too late. The night after the restaurant’s grand opening, Club Rose Bay went into receivership and closed.

Co-owner of Villaggio Restaurant, Simon Kanaan, told The Daily Telegraph they were aware the club was in financial trouble but didn’t realise the extent.

Villaggio Restaurant is run by twin brothers Simon [left] and Harry Kanaan [ right.] with operations manager Ajay Rana (centre). Picture: Supplied

The brothers have built up successful restaurants across clubs in Western Sydney. Picture: Supplied

“We knew there were issues but didn’t know how much,” said Kanaan. “We didn’t understand the politics because the clubs we usually deal with have millions in the kitty.”

Kanaan paid $100,000 to revamp the club’s kitchen equipment, which he was told the club would pay back.

According to the club’s annual reports, in 2022 it was trading at a loss of over $350,000. In 2023 it was trading at a loss of just over $40,000.

According to Australian Securities and Investments Commission documents, the long standing RSL club was placed into administration on August 15th however they were hoping to trade out of it. That’s why they still held their grand opening for the new caterers, giving out free pizza and pasta.

Club Rose Bay has gone into administration. Photo: Tom Parrish

However a statement from SV Porters said the conditions changed the morning following the launch.

“On Friday a major change occurred when Simon Cathro and Andrew Blundell of Cathro & Partners were appointed Receivers by a secured creditor. As a consequence, they took control of the assets of the Club. The Receivers closed the club and terminated all staff (approximately 20 which were employed on a casual basis).”

Kanaan’s staff immediately were sent to work at his other locations including Merrylands Bowling Club, Richmond Club, Club Blacktown and West Ashfield Leagues Club. He also offered work to the Club’s staff.

Despite the closure, Kanaan said he plans to stand by the Club. There are also reports Club Rose Bay may potentially be taken over or merge with another Eastern Suburbs club. They’ve also had patrons at Club Rose Bay visit them at their other venues.

“I could go in there and take the equipment but what would I do with that?”

“I’m hoping the Club will survive or can merge with another club. I love the area and we want a footprint in the East. There is a lot of potential here and I believe it will pay off,” he said.