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AN accumulated debt of up to $8 million was the trigger for the Panthers Group’s snap decision to shut its licensed club at Lavington on Sunday.
Forty staff members lost their jobs because of the closure.
Panthers Group chief executive Warren Wilson delivered the bad news to the full-time, part-time and casual employees at a meeting yesterday after the club doors were shut for the final time at 9pm on Sunday.
The Panthers Group had rescued the ailing Lavington Sports Club in 2001, but had been unable to stem a succession of losses totalling up to $8 million.
Mr Wilson conceded the club had made small profits each year, but remained heavily subsidised by the parent company, which has off-loaded six other similarly under-performing clubs in the past two years.
“One way of looking at it today is that Panthers are the bad guys,” Mr Wilson said.
“The other way of looking at it is that Panthers gave this club 13 years more life.
“We have sustained further losses keeping it open.
“We exhausted all opportunities to be able to sell the club as a going concern.”
Mr Wilson said he hoped the 40 staff members could find work at other local clubs and pubs.
“I would rather be down here saying something else instead of telling people they have lost their jobs,” he said.
“It is a sad day, it is an unfortunate day.
“We have tried to do the best we can to keep it alive.”
Staff members, including courtesy bus driver of eight years Gary Renshaw, said they were upset they found out the club was closing via The Border Mail.
“To find out through the media wasn’t ideal and we are pretty upset we weren’t informed,” he said.
Staff have been told all entitlements will be paid by the Panthers Group.
Lavington Sports Club had been labouring under debts of more than $5 million when the Panthers took over in 2001.
The Panthers Group sold the sportsground to Albury Council for $1.2 million in 2009, to ease its financial burden.
“It can’t pay its way,” Mr Wilson said.
“There is no chance of recovering that debt.
“They are only making a few hundred-thousand dollars a year."
The club, which was founded almost 50 years ago, will enter into discussions with Albury Council about it buying the club building and car parks.
The surrounding land is also used for parking at major events at Lavington Oval, including the Ovens and Murray Football-Netball League grand final.
“It is a very good asset and something the council might be interested in turning into a community asset,” Mr Wilson said.
“But, if the council says no, we might have to sell it to recoup our losses.”
The Panthers will also look to offload 90 poker machine licences from Lavington, but Mr Wilson said he couldn’t put a figure on what they were worth.
“In the city they are worth a lot more,” he said.
“In some tightly held areas they are worth different amounts, but it all varies.”
Lavington is the latest club to be divested by the Panthers group. Previously it has sold off the West Epping and Bathurst bowling clubs and another near Newcastle.
Mr Wilson said the Panthers Group remained strong, but the operating environment for licensed clubs meant tough decisions had to be made.
“Two-and-a-half years ago there was an enormous amount of stress,” he said.
“The Panthers Group was in debt of $100 million and within days of liquidation. But the group is trading extremely well.
“The test for each of the clubs has been can they sustain themselves?
“You can’t have clubs on welfare.”