Cessnock Ex-Services Club ceases trading

The club, which opened in 1947, had approximately 3000 members.

A notice advising members of its closure was posted on the club’s doors on Wednesday morning.

The club, along with its sister club Kurri Workers Club, were placed into voluntary administration under Russell Corporate Advisory on April 11 this year.

The two clubs amalgamated in 2007.

The Kurri club was closed on June 14 and Russell Corporate Advisory was appointed as deed administrator of the Cessnock club the following day.

Administrator Greg Russell said, following the deed of company arrangement in June, he was given six months to assess whether the business would be able to return to a position where it would be able to pay its creditors.

The sale of the Kurri Workers Club property allowed it to pay its secured creditor, but it still owes money to a number of staff from the Kurri and Cessnock clubs, and other creditors.

The club had recorded a slight increase in revenue in recent months, mainly due to the re-opening of its nightclub in August.

But Mr Russell said a combination of factors - including outstanding compliance issues, maintenance and repairs and the rising cost of electricity - meant it was still losing money.

“There are too many issues to save it,” Mr Russell said.

“Closing a club is not something you can do if you can avoid it.

“But at the end of the day I have to make sure the people get paid.

“It would be nice to get the people paid and save the club, but we can’t do both.”

Mr Russell said Russell Corporate Advisory has started an expression-of-interest campaign for the property and he is hoping to have an offer before Christmas.

Meanwhile, the military memorabilia exhibition that was planned to be held at the club this weekend has moved to Cessnock RSL Sub-branch hall on Wollombi Road.