One of Palmerston’s largest social and sports clubs, the Hub, is closing its doors

THE shock closure of the Palmerston Sports Club has left more than 50 people without jobs

The Palmerston Sports Club has announced it is closing down. Picture: Supplied

THE shock closure of the Palmerston Sports Club has left more than 50 people without jobs.

The club announced its closure Wednesday via a media statement, giving no notice to employees or members.

On Tuesday the club also known as The Hub was dishing up $18 schnitzels.

Just a day later, the venue had shut its doors.

“The club’s current business model is no longer sustainable in this very challenging economic environment,” the statement read.

“The club has experienced a significant downturn in business while having to maintain an undesirable cost structure and premises that is no longer conducive to patronage in what is now a very competitive and saturated (over-serviced) market; with no foreseeable improvement anticipated in the near term to justify remaining open.”

The Hub has operated since 1999.

A spokeswoman for Hospitality NT said the Hub’s closure was a sad loss for the community it has served for almost 20 years.

“Unfortunately it was the perfect storm; less customers, more competition and higher Territory gaming taxes,” the spokeswoman said.

Industry sources said The Hub had lost out on $200,000 in gaming revenue as a result of changes by the Gunner Government to the taxation regime.

An outpouring of concern and shock was shared on social media by patrons of the venue.

Restaurateur Jason Hanna said it was devastating to see a fellow business go under.

He said he would do all he could to get the former employees jobs locally.

“All of the staff were great and if anyone is interested in staff they can take them on,” Mr Hanna said.

“We’re hoping that a few operators thinking of hiring can take some.”

He predicted more businesses faced with the strain of increased taxes, rising costs, an over supply of venues and excessive discounting would shut their doors.

“I can guarantee it and I can only hope that I’m not one of them,” he said.

“When I think of fellow pubs and publicans out there I think the gaming tax has claimed its first victim and stay tuned because it won’t be the last.”

The closure of The Hub means the only operating RSL in the Darwin and Palmerston region has shut its doors.

The Darwin RSL went up in flames in June and is yet to reopen its doors.

While Palmerston is the only area in the Top End not to be struggling with population decline, several businesses