Future of Club Swans uncertain
Image: The future of Club Swans is looking uncertain after the club went into voluntary administration two weeks ago. Vivien Luu reports.
The future of Club Swans is uncertain after the club closed its doors on May 18 and handed administration over to leading insolvency firm, Ferrier Hodgson.
Creditors had their first meeting with the firm last Friday to discuss the next steps for Club Swans.
“Most likely outcome is the company will go into liquidation,” said newly appointed co-administrator of the club, Morgan Kelly.
Former club member, Andrew Woodhouse, attended the meeting and said: “When I asked specifically about employees’ entitlements it was made clear that outstanding wages and annual leave and long-service [leave] will only be paid up to a statutory amount. All Superannuation will be lost.”
Ferrier Hodgson refused to confirm this information when asked by City News.
The decision to shut down Club Swans came as a result of the club’s struggling financial situation and inability to renew a lease with the building’s incoming landlord.
The club’s website has since been pulled down and the Swans’ logo has been stripped from the building.
The Kings Cross community was shocked and saddened by the sudden loss of their local watering hole.
“It’s a tremendous shame,” said Adrian Bartels, President of the Potts Point & Kings Cross District Partners.
“[Club] Swans have been an extended lounge room for many people in the community.”
“The financial difficulties of Club Swans have been known for quite a while. In that sense it’s not a surprise, but it did happen very very suddenly,” Mr Bartels said.
Former club member, Alan Brown, said when he visited the Club on the Tuesday before its closure poker machines were already being carted out of the building.
“It’s been very brutal and for me too fast. I smell fish,” he said.
Mr Brown wants to know whether patrons with bonus points on their poker machine cards will have their money credited back.
He is also disappointed by the lack of communication between the club and its members during this upheaval.
“The area’s also concerned about what’s going to replace [Club Swans],” said Mr Brown.
Some locals have speculated new landlord Christopher Cheung, who also owns The Bourbon next door, plans to turn the two buildings into a mega nightclub.
Mr Cheung could not be reached for comment on the matter.
Ferrier Hodgson will make its report and recommendations for Club Swans available in 21 days.
Creditors will then meet again to decide the Club’s fate.
