Members of the shuttered Club Rose Bay have overwhelmingly voted in favour of entering into a club operations management agreement with Merivale, which will see the hospitality giant provide operational funds for the club to reopen.
The club entered into voluntary administration at the end of August 2024. Club Rose Bay’s 2023 financial report showed that in 2022, it was trading at a loss of $350,000. In 2023, that number amounted to just over $40,000.
A general meeting held on Saturday, 18 January 2025, saw a higher-than-expected member turnout. Of those present, 147 voted in favour of the proposal, with only one vote against it.
“The overwhelming success of the member vote clearly indicates the importance of our Club to the local community. It’s very exciting that we’ll be able to reopen the doors to Club Rose Bay in the coming months,” club chair John Bax said.
According to a letter to members from Bax, the proposal was recommended by the club’s administrator and strongly supported by the club board and Club Rose Bay RSL sub-branch.
“We, the board of the club, strongly welcome the support from Merivale to reopen the Club with financial stability, and operational expertise,” he wrote.
“We are grateful to Merivale for this opportunity, and we are confident this will ensure our financial success for our long-term survival.”
Under the agreement, Merivale will become a service provider to the club and oversee club operations, including managing the food and beverage offering and events. However, the board retain full control of the club.
“Merivale’s hospitality and operational expertise will allow us to provide members and guests with a great quality, yet affordable, food and beverage offering,” Bax said.
“We have seen several years’ evidence of Merivale achieving success at the SCG and Allianz Stadium where the food and beverage offering has seen significant quality improvements and an increase in the variety and broad appeal of offerings, whilst retaining affordability.”
Merivale will also help fund a major refresh of the club as part of the agreement.
“Importantly, the proposal will provide operational funds and support so that the club can return to trading,” Bax wrote in the letter.
“This funding is greatly welcomed, as historically, we have been unable to secure adequate funding to allow us to achieve our club’s full potential. Together, the arrangements will put us in a position to continue investment into the club’s future to ensure the secure and welcomed longevity of our club.”
Bax reassured members that the proposal involves loan funding only, with the club and the sub-branch retaining ownership of all operational assets and premises.
“Merivale will not own any assets of the club or sub-branch. The board, and the club’s CEO/secretary will at all times retain authority, oversight, and control over operations and governance of the club,” Bax said.
At the end of last year, Merivale agreed to settle the underpayments class action brought against the company in 2019 for $19.25 million.
With the member vote secured, the club is expected to receive final regulatory approval in the coming weeks.
This article first appeared on Club Management sister title, Australian Hotelier.