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Business elite’s Tower Club to close doors in January

Due to mounting losses through the years, the ritzy Tower Club, which has the country’s top business owners and executives in its roster of members, is planning to permanently close “due to growing operating losses through the years.”

In a statement, Tower Club Inc. said its shareholders have approved a plan for the permanent closure of the Club after reporting its losses last Friday and in past Annual Shareholders Meetings.

“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,” the Club said.

In its annual general shareholders’ meeting held at the Club and via videoconference, the shareholders voted to shorten TCI’s corporate life, effective January 31, 2022, subject to regulatory approvals.

The shareholders also approved the permanent closure of the Club’s food outlets and gym, which have been closed due to the pandemic.

“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,” it said.

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 percent in the first half of the year.

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.

“The TCI Board will work on the Club’s orderly closure and ensure compliance to regulatory obligations,” it noted.(James A. Loyola) 


Source: Manila Bulletin (https://mb.com.ph/2020/09/28/business-elites-tower-club-to-close-doors-in-january/?utm_source=rss&utm_medium=rss&utm_campaign=business-elites-tower-club-to-close-doors-in-january)

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