The Columbus Country Club, a community landmark since 1923, has filed for bankruptcy after cutbacks failed to offset economic setbacks.
The club filed for Chapter 11 reorganization May 3 in federal court, putting the claims of 24 creditors temporarily on hold while the institution tries to restructures its debt.
“If we get that done,” said Club President Kirk Hardy, “we should be able to come out of bankruptcy a better and stronger club.”
Until then, he added, it will be “business as usual” at the club, which will remain open with the same rates and services.
Although the club — which is owned by 84 shareholders — won”t release how much it owes until after a creditors meeting June 12 at 11:30 a.m. in Aberdeen, Club President Kirk Hardy said the five largest creditors are banks, which have a lien on the property.
In 2010, the club owed more than $2 million to the banks, which included Cadence Bank for a loan to construct the club swimming pool. It also owed investors and members, who paid off $55,000 in back taxes.
Despite cutting six jobs — including that of its PGA-certified gold professional, Tom Riley – and maintenance expenses by 35 percent, the club has continued to lose income as members have jumped ship.
The country club”s total revenue drooped from $2.05 million in fiscal year 2008 to $1.04 million in 2010, according to club financial statements.
During that same time frame, the club”s net assets and fund balance dropped from $1.18 million to $504,425.
Much of that loss comes from a dramatic drop in members, from more than 365 members in 2009 to about 230 now, Hardy said.
“That has really hurt us,” he added.
As the reorganization moves forward, details about how long it could take and other questions will become clear, he said.
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