Wick club had debts of over £86,000
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THE Francis Street Club in Wick had debts of £86,109 when it was wound up earlier this year.
The figure includes £49,432 for trade and expense creditors, while £10,334 is owed to banks and institutions and £9800 to HM Revenue and Customs, according to a report which has been seen by the John O'Groat Journal. It was written by interim liquidator FRP Advisory and presented at a meeting of creditors on April 18.
The document also points out that with assets estimated to be worth £81,206 for the property and fixtures and fittings the deficit was £4903 at March 14 but with £1216 owed to ordinary shareholders the total is £6119.
It says the premises have been valued and will be put up for sale "as soon as is practicable".The report also points out that a figure for the fixtures and fittings has been estimated and they will also be sold.
An extract of the unaudited accounts shows that turnover at the club for the year ended November 2017 was £160,940 compared with £197,071 for the previous 12 months. There was a net loss of £51,783 in 2017 compared with £11,537 in 2016.
Administrative expenses accounted for £146,290 in 2017 which was an increase of £2941 on the year before.
Claims by preferential creditors – ex-employees – were estimated to be £2500 and are expected to be paid in full, while the liquidator's costs from February 13 to March 14 amount to £6676 for a total of 25.3 hours' work.
The document states there is a deficiency account which indicates "an unexplained difference" of £4146 in the final trading period from December 1, 2017, to March 14, 2019, but gives no further details.
A report submitted at the club's annual general meeting in May 2018 highlighted some of the problems it faced.
"The financial report does not make good reading... and have been sneaking up on us for several years, for example the smoking ban, drink driving, cheap supermarket drink and also a downturn of various functions and support for the club.
"The halcyon days of social clubs are, it seems, sadly in the past and unless we as a committee... can come up with ideas to generate more income things will continue to falter."
But it added: "With some fresh ideas and some new committee members and a general upturn in our trade we can turn the corner."
That did not happen. The liquidators report says that following a review of the company's financial position it became clear it was unable make payments of its liabilities when they were due.
As a result the management committee sought "the appropriate advice" and presented a winding-up petition at Wick Sheriff Court. A I Fraser was appointed provisional liquidator on February 13 and as interim liquidator by the court on March 14.
The club was founded in 1920 as a British Legion and was registered as society in May 1982 under the Industrial and Provident Societies Act of 1965 and later under the Co-operative and Community Benefit Societies Act of 2014.
It was managed by club members who were appointed to the management committee. Each member held a £1 share in the club.
The company traded as a social club and provided a variety of entertainment and sporting events, including functions, darts evenings, pool competitions and children's parties.
It was funded by members' annual subscriptions as well as trade from bar sales, functions and other entertainment activities. The club ceased trading in January.
Since the premises closed a group of members have expressed concern about what has happened and want answers to questions they have posed. Members, they claim, were not informed about the closure by letter or social media – just a basic notice on the door.
