Property

Poor patronage, rising delinquency rates: Tower Club headed for insolvency, blames members for permanent closure

Tower Club Inc. (TCI) decided to close down the “highly-exclusive business club” before its imminent descent into insolvency in 2021.

This was revealed by the Club’s Philam-led management which blamed members for the worsening cash problems of the Makati-based elite club founded by the former central bank governor Joey Cuisia.

RELATED STORY: Tower Club collapses: Philam-led management shuts down elite club founded by Sycip-Cuisia, members upset

“The Club’s financial statements showed rising operating losses through the years, due to declines in patronage and higher delinquency rates from the non-payment of monthly dues, which outweighed efforts to maintain operating expenses,” the Club said in a statement.

“It was foreseen that these losses will continue to rise and become more unsustainable because of the COVID pandemic’s devastating impact on the dining, entertainment and leisure sector…Anticipated higher losses exacerbated by the pandemic are projected to make TCI capital deficient by next year. Due to COVID, TCI’s revenues fell by 28% in the first half of the year,” it added.

Some members have accused management of “railroading” the Club’s closure during its annual general shareholders’ meeting held at the Club and via videoconference on 25 September 2022. The upset members claimed management did not try hard enough to keep the Club alive and that it did not give members enough time and full financial details to review the planned closure before the voting.

But TCI was adamant that it has been candid about the state of the Club’s finances even before majority of its shareholders voted to close down its dining and gym facilities and shorten its corporate life to 31 January 2022. It said that the Club’s “growing operating losses through the years” were reported not only in the September 25 meeting but also in past annual shareholders meetings.

“The Club, through the years, had implemented measures to boost revenues particularly in banqueting operations, and to collect unpaid membership dues, but the overall drop in income has worsened due to the COVID pandemic,” said TCI.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.