Club Corowa is concerned that amalgamating with Corowa Golf Club would the club’s financial health at risk, potentially forcing cutbacks in facility improvements and community support
Club Corowa and Corowa Golf Club have ceased possible amalgamation discussions.
Hold tight - we’re checking permissions before loading more content
A number of reasons including the tough economic conditions, extensive challenges around the food and beverage industry at present and perceived risks of a partnership led to Club Corowa’s decision being conveyed to Corowa Golf Club on August 20 that it will no longer continue amalgamation discussions.
Club Corowa’s decision follows a thorough financial review.
“The decision protects the club’s future and its ongoing support for the Corowa community,” Club Corowa CEO Peter Norris said.
He explained that due to the close proximity and similar nature of the establishments, a merger could “bring both clubs to their knees”.
“Amalgamating with Corowa Golf Club would put our financial health at risk, potentially forcing cutbacks in facility improvements and community support,” he said.
“This could ultimately lead to the closure of both clubs.
“At the end of the day, our priority is to protect our club, our staff and members' interests, and our ability to invest in our community for generations to come.”
The decision was supported by a comprehensive internal assessment, undertaken by an independent analysis by Tully Heard Consulting.
Mr Norris highlighted reduced discretionary spending and a bleak outlook for the hospitality industry further compound the risks.
“Given the current uncertainty in the hospitality industry and the challenges noted in the consultant’s report, an amalgamation would be too high risk for our club,” he said.
In the past few years, Club Corowa has supported Corowa Golf Club by providing a $300,000 interest-free loan with a recently extended repayment term and offers of administrative assistance.
The club remains open to providing advice and exploring opportunities with Corowa Golf Club going forward.
Mr Norris said Club Corowa is willing to work with Federation Council and other community stakeholders to ensure important recreational facilities are a fixture of the town.
“While we're not merging, we remain steadfast in our commitment to Corowa,” he said.
“Aligning with our future vision, we're actively exploring opportunities to expand in growing areas, specifically away from gaming.
This strategic move will generate new revenue streams, allow us to reinvest in club facilities, and enhance our community support through our ClubGRANTS program.”
Through such programs as ClubGRANTS, Club Corowa has raised significant funds for local organisations and causes, supporting the region through floods, fires and the global pandemic.
Mr Norris said the club remains steadfast in its commitment to serving the Corowa community and looks forward to many more years of fostering connections and supporting local initiatives.
“For over four decades, we've brought people together and supported our community,” Mr Norris said.
“We remain dedicated to providing a welcoming environment for all and positively contributing to our region’s social and economic wellbeing.”
Accepting decision
Despite the withdrawal from Club Corowa, the Corowa Golf Club will continue on with its expression of interest process for amalgamation.
Corowa Golf Club President Debra Eason, on behalf of the board, said: “While this could be seen as a missed opportunity for both clubs to develop and strengthen their positions within the community, Corowa Golf Club accepts Club Corowa’s decision and will move forward with our own Expression of Interest process for Amalgamation.
“Our board recognises the critical importance and value Corowa Golf Club adds to the community as a recreation destination aiding health and wellbeing of the community, its members, and patrons.
“It is a key economical driver for the town and region, increases visitation and contributes to Corowa’s liveability appeal.
“Becoming a ‘venue of choice’ is paramount to our sustainability.
“To enable Corowa Golf Club achieve this, the board has completed an analysis of our current situation and future potential.
“Acknowledging current challenges due to financial constraints attributed in part to the current economic climate, environmental impacts, and its current business model.”
However, the future business and development opportunities for Corowa Golf Club and the Corowa community are significant according to the president.
“We have full confidence that a suitable, committed, invested partner will be found,” Ms Eason said.
3°C