CLUB Mulwala’s board of directors is facing a potential major shake-up in the wake of a $1 million loss and the recent departure of two long-serving senior staff members.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The club’s annual report has revealed a loss of $1,185,259 for the 2013-14 financial year, which includes an operating loss of $524,255 compared to a profit of $126,905 in the previous 12 months.
The biggest hit on the bottom line was a loss of $661,004 due to the devaluation of land owned by the club at 227-253 Melbourne Street.
Chairman Brian Cossar has been automatically re-elected to the board as the only nomination for chairman.
The seven other current directors — vice-presidents Brian Bouchier and John Pattison and John Clarke, John Futcher, Russell Ingram, Shane McBurnie and Kerry Pendergast — have re-nominated, but are facing a Melbourne Cup field of challengers.
The hopefuls are Maurice Seiler, Ian Summers, Ian McKenzie, Peter Jones, John Fairbairn, Lynne Dowsett and David King.
The club’s annual meeting will be held on October 19.
The first hint of upheaval at Club Mulwala came in early August when its chief executive officer of the past 36 years, Michael Mullarvey, and assistant manager of three decades, Graeme Edis, were sacked and escorted from the building.
Mr Cossar said at the time: “A change in focus and direction has seen the services of its two senior managers come to an end.”
Their departures were not mentioned in his president’s report in the annual report.
But he did explain the reasons behind the surprise $1 million-plus loss.
“The board made a significant decision to upgrade the kitchen and dining facilities at Club Mulwala, which effectively put these areas out of business for eight to 10 weeks, creating a loss of income for that period,” he said.
“Consequently our debt rose to cover the cost of the renovations and the board is continually looking to reduce this as soon as possible.
“We have experienced a downturn of visitor numbers throughout the year which had a significant effect on our business.
“It has meant that we have had to counteract those challenges and think smarter to ensure the long term viability of Club Mulwala.”
Former Yarrawonga- Mulwala Golf Resort chief executive Rob Dick has been appointed Mr Mullarvey’s acting replacement.
