Shareholders agree to close Tower Club

Shareholders of Tower Club Inc. (TCI) approved a plan for the permanent closure of its premium business club due to growing operating losses.

The closure order was reported to shareholders over the weekend, including in previous Annual Shareholders Meetings.

The shareholders foresee that these losses will continue to rise and become more unsustainable following the devastating impact of COVID-19 on the dining, entertainment and leisure sector.

During its annual general shareholders’ meeting held at the highly exclusive club via videoconference on Friday afternoon, the shareholders voted to shorten the corporate life of TCI effective 31 January 2022, subject to regulatory approvals.

Shareholders of the premium business club with membership comprising of notable leaders and movers, also voted for the permanent closure of the its food outlets and gym, which have remained closed due to the pandemic.

Financial statements of TCI indicate rising operating losses, due to declines in patronage and higher delinquency rates from the non-payment of monthly dues, which outweighed efforts to maintain operating expenses.

Anticipated higher losses due to the pandemic are projected to make TCI capital deficient by next year.

Citing the impact of COVID-19, revenues of TCI fell by 28 percent in the first half of the 2020.

Through years, TCI had implemented measures to boost revenues, particularly in banqueting operations, and to collect unpaid membership dues, but the overall drop in income worsened due to the pandemic.

The TCI Board is expected to work on the club’s orderly closure and ensure compliance to existing regulatory obligations.

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Article and Photo originally posted by Tribune.Net.Ph last September 28, 2020 3:40am and written by Jun Yap.