Arundel Hills Country Club operated at a loss for years before it collapsed

A besieged Gold Coast country club operated at a loss years before it collapsed while owing millions of dollars, it can be revealed.

A besieged Gold Coast country club operated at a loss years before it collapsed while owing millions of dollars, it can be revealed.

Administrators were appointed to Arundel Hills Country Club owners Zhongsheng Management Pty Ltd last month.

A report from Grant Thornton administrator Graham Killer has revealed the company owed at least $5.56m to employees, unsecured creditors and related parties of the company.

The document said the company had been operating at a loss since 2016 and booked an estimated $4.2m in losses since then.

Losses topped $1m in FY19 and FY20.

Arundel Hills Country Club entrance. Picture: Glenn Hampson

Administrators said the company may have been insolvent as far back as 2018.

Zhongsheng Management was also found to have tax debts of more than $1.4m and kept inadequate company books and records.

“Upon appointment, we undertook an urgent assessment of the company’s ability to continue trading,” the report stated.

“The administrators decided to shut down the business on May 24, 2022 due to the following: insufficient funds to trade the business; and the landlord terminated the lease on May 23, 2022 requiring the company to vacate the premises by June 18, 2022.”

The company owed money to secured creditors including Berwick’s (Golf Coast) Pty Limited, Taylor Made Golf Australia Pty, Roy Gripske & Sons Pty Ltd and Adidas Australia.

Men playing golf before the Arundel Hills Country Club went into administration. Picture Glenn Hampson

The administrators have proposed a deed of company arrangement instead of liquidation.

In that scenario, they estimate employees would get all owed money back, but unsecured creditors would only get between 22.3 cents and 28.3 cents of every dollar owed back.

The abandoned country club went into administration just weeks after the Bulletin reported it had fallen into a state of disrepair and was overrun with aggressive kangaroos.

In April, a woman suffered cuts to her face after she was viciously attacked by a kangaroo at the golf course.

An investigation has since been launched into a “disturbing” report of a owner urging their dog to chase and attack kangaroos at the club’s grounds.

A council spokeswoman said the “allegation of the dog chasing wildlife” was the subject of a current investigation.

She said a second report of a “dangerous dog” wandering the grounds had been dealt with by its animal management team.

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Originally published as Arundel Hills Country Club operated at a loss for years before it collapsed