Club showdown looms as tensions rise, members push for leadership change

MONTHS of intense community backlash and mounting concerns over the management of the Junee Ex-Services Memorial Club are set to reach a boiling point next week, as paying members prepare to confront the Board of Directors at the club’s highly anticipated annual general meeting (AGM).

A cloud of uncertainty looms over the club’s future, as financial records reveal it has failed to turn a profit since 2022.

According to the club’s latest financial statements, it has operated at a loss for a second consecutive year, recording a net loss of $666,493 in 2024 following a $168,493 deficit in 2023.

As of December 31, 2024, the club’s liabilities also exceeded its current assets by $131,195, with negative operating cash flows of $10,981.

Additionally, its savings have been significantly depleted, with cash reserves dropping from $1.849 million at the start of 2023 to just $323,228 as of three months ago.

Much of the expenditure has gone into refurbishing the club, including upgrading the car park, replacing air conditioning units, laying new carpet in the auditorium, and repainting both the interior and exterior.

The club also fast-tracked renovations to its decades-old kitchen and dining area following the sudden departure of Danny’s Kitchen in mid-2024, and hired 10 extra staff to run its new bistro, Harvesters, which opened in October—driving employee expenses up by $345,000 to $1.275 million in 2024, compared to $930,598 the previous year.

Membership numbers have also continued to decline, closing out 2024 with 2,113 paying members—down from 2,208 at the start of the year.

But despite its financial struggles, the club contributed a record $110,000 to the community through donations, sponsorships, and complimentary room hire in 2024, up from $79,425 in 2023.

A GRIM FINANCIAL PICTURE

The club’s annual report and financial statements have ignited widespread concern, revealing a bleak outlook.

According to Note 17 in the financial report, the statements have been prepared on a “going concern” basis, assuming the club will continue operating in the foreseeable future.

However, independent auditor David Rosetta of John L Bush and Campbell Chartered Accountants cast doubt on this assumption, stating in his report that a “material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.”

Despite these warnings, the Board of Directors remains optimistic, insisting the club is in a position to weather the storm and continue paying its bills.

“In the directors’ opinion, there are reasonable grounds to believe that the entity will be able to pay its debts as and when they become due and payable,” stated the Directors’ Declaration, signed by President William Hulm and Senior Vice President Graham Besley.

The Board has outlined cost-reduction strategies and plans to explore growth opportunities. It has also commenced an application with ANZ Bank to secure additional financing to assist with short-term liquidity fluctuations.

The club finished repaying its previous ANZ business loan on April 4, 2024.

LEADERSHIP SHAKE-UP

Outgoing General Manager Clare Hoadley, in her final annual report, painted a more optimistic picture, stating that the club was moving into 2025 with “strong capabilities and systems in place to weather any storm it faces.”

“We started off 2024 with less cash on hand than we would have liked, but I would like to highlight and celebrate that the club is in no debt as of the writing of this report,” she said.

“We are considering seeking a loan to temporarily boost our cash holdings for short term cash flow. Our cash flow projection shows us still solvent and in a strong position throughout 2025.

“We have also implemented long term cash saving operations to limit the outgoings of the club.

“The Board of Directors and I are confident in our plan moving into the future and are excited about the future of The Junee Ex-Services Memorial Club Ltd.”

However, her sudden resignation just weeks before the AGM has only added fuel to the fire.

Her surprise exit follows the resignations of two board members, Simon Broad and Jason Hindmarsh, who stepped down as Directors in August 2024 and February 2025, respectively.

Hoadley has spent much of the past year defending the club’s position, particularly amid the fallout from Danny’s Kitchen’s abrupt departure.

The restaurant, which had leased the club’s kitchen for 27 years, severed ties with the club amid allegations of bullying and discrimination in mid-2024.

Owners Danny Yap and Emily Yin claimed they were pushed out to make way for the club’s new bistro—claims the Board has denied.

The Junee Bulletin’s coverage of the controversial split sparked an outpouring of support and sympathy for Danny’s Kitchen which is now operating out of its new home, Junee’s iconic Red Cow Hotel.

In her annual report, Hoadley said the last year had been “particularly difficult”, following the “shocking” departure of Danny’s Kitchen and the “subsequent backlash” the club received.

She said she wouldn’t have been able to get through the year without the support and guidance of the club’s Board of Directors, and thanked the Club’s staff for showing “great resilience” through what she said had been a “very, very tough” time for the Club.

MEMBERS DEMAND ACCOUNTABILITY

As tensions rise, next week’s Annual General Meeting is shaping up to be a showdown between club leadership and frustrated members who are calling for transparency and change.

The club’s AGM is set for Wednesday, April 2, at 6:00 pm in the club’s auditorium, and with many members eager to hold leadership accountable, the meeting could mark a turning point in the club’s history.

In an open letter published on Facebook, member Diane Tucker described the situation as “a worrying time.”

“The club’s figures show an alarming drop in cash revenue over the last period, leading to questions about its operations and its capacity to continue,” she said.

“The Board needs to understand that they are accountable to their members. This has been pushed aside, and as a result, the club’s support from its members has decreased.”

She also criticized the club’s handling of nominations for the Board of Directors, noting that members have been given only six hours—between 10:00 am and 4:00 pm on Tuesday, March 25—to submit their nominations.

“The club has provided only one day to submit nominations and a short window for voting, with no consideration for members who can’t make these times,” Tucker said.

Nomination forms are available at the Club, and must be returned between 10:00am and 4:00pm tomorrow, Tuesday, March 25.

Voting for the new Board will take place at the club’s main office at the following times:

• Wednesday, March 26 – 10:00 am to 4:30 pm
• Thursday, March 27 – 10:00 am to 4:30 pm
• Friday, March 28 – 10:00 am to 12:00 pm
• Tuesday, April 1 – 10:00 am to 4:30 pm
• Wednesday, April 2 – 10:00 am to 5:00 pm

Any business members wish to raise at the AGM must be lodged in writing and submitted to the club’s office no later than 4:00 pm on March 31.