Sydney’s iconic Taxi Club has gone into voluntary administration after the club’s directors appointed chartered accountants Armstrong Wily as administrator.
However the club is still hopeful that it will be able to amalgamate with another club, and it will remain open for the foreseeable future.
In March the club announced it would close for good on April 8, telling members, “Despite our best efforts, our financial situation has deteriorated to the point where we have no option other than to shortly cease trading”.
“This is an enormously disheartening decision, and has not been taken lightly,” a letter from the board read.
But on April 11, Armstrong Wily contacted the club’s creditors to inform them it had been appointed administrator.
Armstrong Wily will now attempt to maximise the chances that the company can continue to exist and pay its debts or, if that is not possible, seek to provide a better return to creditors than would be the case if the company was wound up and liquidated.
Voluntary administration also means any legal action by creditors will be stayed during the process and creditors will not be able to start or continue legal proceedings against the club without the consent of the administrators or leave of court.
Creditors met with the administrator on April 19 and approved it to investigate the company’s affairs.
Following a second meeting with Armstrong Wily, creditors will either accept a Deed of Company Arrangement binding how the company’s affairs will be dealt with, return the company to its directors to run, or put the company into liquidation.
The Taxi Club was not able to provide comment to the Star Observer before deadline.