Formerly Southport Workers Club, in late 2012 the Club found itself in massive debt to the tune of $4 million. They were in a dire situation and with the bank closing in something had to happen.
After a series of crisis meetings with all stakeholders, the Club decided to examine the options that would allow them to continue trading. It was clear they were not in a position to trade their way out of the situation without a significant change. They had just recorded their fourth consecutive loss, adding up to a total trading loss over this period of almost $2.3 million.
The options available to the Club were limited – they could either go into administration or search for a business partner to assist them out of trouble.
After a tender process, the Club decided to partner with HCS, to help them move forward and stabilize the business. The deal was they would sell their real estate on a lease-back arrangement. They entered into a management agreement with HCS with the offer of a $2 million unsecured loan to help rebrand and refurbish the club as well as modernize the aging gaming fleet.
Under HCS Management, the Club quickly stemmed the hemorrhaging and had turned the business around by late 2013. By 2015, the Club was delivering net profits approaching $1 million – a staggering turnaround after six years of trading losses that totaled approximately $5 million.
Profits have continued to grow and by 2017, only 5 years on from facing closure, CSI Southport was in a position to undertake a massive $5.5 Million Stage Two redevelopment.