Rotorua RSA to close after 99 years

Reg Randall (left), Ian Kernot, Joy Wilkinson, Ngaire Nicholson and George Wilkinson, are upset the Rotorua RSA is closing tomorrow.

Last orders will be called at the Rotorua RSA tomorrow as the association admits it cannot keep losing money and will have to close its doors.

The association, which is 99 years old, will shut at 10pm with the loss of 11 jobs and will begin to consider options for its future.

"The decision wasn't made lightly and I feel for our affected staff," RSA president William McDonald said.

"However, like a number of RSAs around the country, we have been losing money over the last few years. In our case, the ongoing losses are no longer sustainable and the RSA can no longer continue to operate in its current form."

In June the RSA resolved to cease operating in its current location and to place the building, which it owns outright, on the market. The proceeds from the sale will be used to pay off debt and work towards a sustainable future model.

A short-term loan from the Rotorua Lakes Council will allow the RSA to pay off some of its debt immediately while it considers its future. The loan will be secured against the RSA building, at no cost to ratepayers. Several options to temporarily merge with other clubs are being investigated and it is hoped RSA members will soon have an alternative venue to patronise.

"Next year Rotorua RSA will celebrate 100 years," Mr McDonald said.

"We'll reach our centenary, and beyond. However, what we look like, where we are, and how we operate could be very different."

Mr McDonald said the RSA had received a lot of support from individuals, groups and businesses locally and nationally. "The support has been humbling, and it's ... kept us going through this difficult time."

Rotorua Lakes Council chief financial officer Thomas Colle said the RSA needed to cease trading to halt its losses and avoid insolvency or receivership.

"Our council did not want to see that happen - the RSA is seen as an important part of our Rotorua community.

"Council's assistance will ease their transition, enable them to clear their debt and work towards finding a long-term, sustainable solution for their organisation," Mr Colle said.

The Rotorua Daily Post revealed in April that the association was "significantly in the red" and had brought in valuers in the hope it could sell some of the items in the RSA's museum.

The Rotorua Energy Charitable Trust has also stepped forward and said it would buy the memorabilia, estimated to be worth around $80,000, to ensure it stays in the city.

Trust chief executive Stuart Burns said the trust was in talks to buy the military memorabilia with a view to displaying it at the Rotorua Museum.

"It will form part of our heritage collection," he said.

Several options are being investigated to temporarily merge with other clubs to allow members to continue with social teams such as indoor bowls.

Members at the club yesterday were upset at the closure.

Some, such as Korean War veteran George Wilkinson, have been members since the 1950s.

Women's section president and life member Ngaire Nicholson said they didn't know what would happen to the women's section.

"If we've got no premises then we can't keep going. My late husband, Norman, was also a life member. He'd be turning in his grave."

An extraordinary general meeting will be held for members to decide where they move to. The committee is currently in the information gathering stage.