Newark Golf Club in Nottinghamshire has been sold for an undisclosed sum to Stellar Asset Management, an inheritance tax and estate planning firm that has bought three other golf venues in the UK over the last eight years.
The sale has not only secured the future of the 123-year-old club and saved jobs, but, unusually, it will also deliver a significant dividend to its 400-plus members.
Earlier this year, the directors of the club, which was founded in 1901, recognised that its funds were not sufficient to undertake the substantial improvements needed to update the 18-hole course and club house, threatening its ability to continue to operate without becoming insolvent.
With the support of the membership, the directors worked with Begbies Traynor to market the club while managing its cash flow and reserves, enabling it to continue to trade during the sale process.
Following the appointment of agents HMH Golf & Leisure, around 20 interested parties were identified, with Stellar Asset Management ultimately chosen by the members as the preferred bidder as it guaranteed the continued operation of the club.
“We are very proud of the outcome we have achieved which benefits all parties,” said Bob Maxwell, who heads up the Leeds-based Strategic Options team for Begbies Traynor. “The key aspect of this project which enabled us to deliver such a positive outcome was the swift recognition of the impending financial issues by the directors.
“As they turned to us for advice at such an early stage, we were able to ensure that the club continued operating while we sought a solution which met the needs of the members and also enabled them to stay in control of the process.
“By completing a sale, not only have we been able to safeguard the future of this historic golf club in the hands of an experienced new owner, but, uniquely, there will be a return back to members, as shareholders, once the creditors have been re-paid. It has also secured the jobs of the 20-strong team at the club.
“This was a very unusual sale due to the pay-out of a dividend to shareholders and was only possible due to the members and committee taking swift action before an insolvency became inevitable.”
Maxwell added: “It is a challenging time for many sports clubs of this type, but with early intervention, we can ensure a process that keeps the club in control of the sale process and ensures safe stewardship for the future. The key is early action to protect the interests of the club and membership.”
Stellar Asset Management now operates a portfolio of four clubs in the UK, having previously acquired Bramshaw Golf Club in Hampshire in 2021, Paultons Golf Centre in Hampshire in 2019, and Murrayshall Country House Hotel & Golf Club in Perthshire in 2016.