Posted on 17th Jul
Twenty jobs and a golf club that dates back more than a century have been saved.
A sale, led by Bob Maxwell and Robert Dymond, of Begbies Traynor Group, resulted in the sale of the assets of Newark Golf Club to Stellar Asset Management, which owns golf clubs and leisure resorts.
The deal has not only secured the future of the historic golf club and saved jobs, but, unusually, it will also deliver a significant dividend to its 400-plus members.
Earlier this year, the directors of the club, which was founded in 1901, recognised that its funds were not sufficient to undertake substantial improvements needed to update the 18-hole course and club house, threatening its ability to continue to operate without becoming insolvent.
With the support of the membership, the directors worked with Begbies Traynor to market the club, while managing its cash flow and reserves, enabling it to continue to trade during the sale process.
Following the appointment of agents, HMH Golf & Leisure in association with Ben Allen, around 20 interested parties were identified, with Stellar Asset Management ultimately chosen by the members as the preferred bidder because it guaranteed the continued operation of the club.
The sale was supported by the club’s lender, Clydesdale Bank.
“We are very proud of the outcome we have achieved, which benefits all parties,” said Bob, who heads up the Leeds-based strategic options team for Begbies Traynor.
“The key aspect of this project, which enabled us to deliver such a positive outcome, was the swift recognition of the impending financial issues by the directors.
“As they turned to us for advice at such an early stage, we were able to ensure that the club continued operating while we sought a solution that met the needs of the members and also enabled them to stay in control of the process.
“By completing a sale, not only have we been able to safeguard the future of this historic golf club in the hands of an experienced new owner, but, uniquely, there will be a return back to members, as shareholders, once the creditors have been re-paid. It has also secured the jobs of the 20-strong team at the club.
“This was a very unusual sale due to the pay-out of a dividend to shareholders, and was only possible due to the members and committee taking swift action before an insolvency became inevitable.
“It is a challenging time for many sports clubs of this type, but with early intervention, we can ensure a process that keeps the club in control of the sale process and ensures safe stewardship for the future. The key is early action to protect the interests of the club and membership.”
