Is Justin Hemmes-owned Merivale set to take over operations of Club Rose Bay

Club Rose Bay closed less than 24 hours after launching a new bistro, with staff terminated and the business put in receivership. Now, members will vote on whether hospitality giant Merivale should take over.

Merivale could take over operations of the embattled Club Rose Bay, pending a member vote.

In August, the waterside RSL club closed down and staff were terminated after the club went into receivership, less than 24 hours after launching its new bistro, Villagio,

Now, The Daily Telegraph can reveal the members have been asked to vote to have hospitality juggernaut Merivale take over club operations.

In a letter sent to members on Friday, president John Bax said the club’s administrator, the club board, Club Rose Bay RSL sub-branch and the club’s creditors all approved the move by the Justin Hemmes-owned company to take over operations.

It comes as the long standing club was placed into administration on August 15 with debts of over $40,000. The club had hoped to trade during the administration, however creditors appointed receivers who then closed the club.

Club Rose Bay suddenly closed in August. Photo: Tom Parrish

Club Rose Bay has gone into administration but the board has given the green light for Merivale to take over operations. Now members must vote. Photo: Tom Parrish

A letter explained that Merivale would become a service provider provider to the club and manage the food and beverage, however, the proposal is for loan funding only. Merivale will not own any assets or control governance.

“The board will remain in full control of the club, your rights as a club member will not change, and your member discounts will continue to apply,” the letter stated.

Justin Hemmes-owned Merivale could take over operations of Club Rose Bay, but not governance. Picture: Mick Bruzzese

As part of the proposal, Merivale will provide the club with funding to undertake a refurbishment of the RSL including enhancing it’s war legacy displays.

Mr Bax said Merivale’s success at providing affordable yet quality food and beverage at the SCG and Allianz Stadium made it “a prime candidate to deliver the rejuvenation and future health of Club Rose Bay”.

Members are being asked to vote for the proposal at the general meeting on January 18. If successful, this would be the first RSL club operations in Merivale’s portfolio of over 70 venues.

It’s understood that if the vote was successful, the Merivale-operated club would be keeping it’s prices in line with those set by RSLs in the area.

In a statement, Mr Bax told The Daily Telegraph the club was “thrilled with Merivale’s support to renew and revitalise our club and its offerings which will allow us to strengthen our ties to the community and sporting clubs, while supporting the veteran community and their families, with longevity”.

Club Rose Bay’s harbourside location makes it an ideal spot. Photo: Tom Parrish

Hemmes said Merivale’s support would see Club Rose Bay grow its membership and increase visitation.

“We are committed to supporting Club Rose Bay, the Rose Bay RSL sub-branch and their members to re-establish the club, while preserving, honouring and enhancing the club’s rich history and war memorial,” he said.

“By safeguarding its legacy and securing its future, it will ensure the club remains a significant part of the community for future generations.”