Shock News: Kirribilli Club shuttered, staff sacked, following appointment of administrators.

By ANNA USHER

Staff at the Kirribilli Club have been left high and dry following the sudden termination of their employment this week.

The landmark club with more than 18,000 members shuttered unexpectedly on Monday after being placed into voluntary administration on June 19, three months after it issued a mayday call asking for urgent financial help.

Hugh Armenis of SV Partners said the decision was made with regret, having previously promised the club would continue to trade while an assessment process was underway.

The future of the privately owned site is now in question, with the first meeting of creditors to be held on Friday 28 June.

“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,” a statement released to Mosman Collective reads.

The Kirribilli Club has been part of the lower north shore landscape since 1946, hosting weddings, functions and gatherings for generations of residents and visitors.

“The Administrator recognises the emotional and financial hardship that this closure will cause to many. People and we 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,” the statement says.
One staff member, speaking on the condition of anonymity, said standard entitlements will be paid out, with long service leave required to be lodged through the creditor process.

“It’s very sad,” the employee told Mosman Collective.

“It was a great club with good people and wonderful customers, many who visited from interstate and overseas for the unique views.”

The staffer said overwhelming operational costs combined with the current economic climate had seen a “steady and noticeable drop off in patronage over the past six to twelve months.”

“I feel particularly for the fulltime staff who have lost their jobs,” he said, “as well as people who have weddings and other important functions booked in. Hopefully something can be done to help them.”

“The board turned a blind eye to the issues for too long which resulted in it getting to this point. You can’t rewrite history but a different decision several years ago may have avoided this. I guess we will never know.”

Founded after World War II for ex-defence force personnel and their families, the club opened at its present site in Lavender Bay in 2007.
Earlier this year, it asked members to buy $2000 debentures when landlord Stadia Capital increased the rent on its premises overlooking Sydney Harbour.

The prime waterfront block was bought by Stadia in 2022 for $22.8 million.

Former North Sydney mayor Jilly Gibson, a lifelong club member, said the plan to raise money from members was “an interesting idea, but I couldn’t see it working”.

“I do feel concerned for well-meaning locals who bought the debentures for $2000,” she said. “Can they get that money back now?”
Gibson said the club had been in trouble for many years.

“It’s been in financial difficulty almost from the time it opened in Lavender Bay.”

A Clubs NSW spokeswoman said the cost-of-living crisis had taken a significant toll on many hospitality businesses.

“The combination of soaring operating costs and patrons pulling back on their discretionary spending has seen an increase in struggling clubs seeking extra support from their communities or pursuing amalgamations with larger clubs in a bid to remain in business,” she said.

“Sadly, without a lifeline, some clubs have been forced to close their doors permanently.”

Have you been impacted by the closure of the Kirribilli Club? Let us know.