Shareholders of Tower Club Inc. approved a plan for the permanent closure of the club due to growing operating losses through the years.
The club said losses would continue to rise and become more unsustainable because of the COVID pandemic’s devastating impact on the dining, entertainment and leisure sector.
In an annual general shareholders’ meeting held at the club and through videoconference on Friday afternoon, the shareholders voted to shorten TCI’s corporate life effective January 31, 2022, subject to regulatory approvals. The shareholders also approved the permanent closure of the club’s food outlets and gym, which have been closed due to the pandemic.
The club’s financial statements showed rising operating losses through the years due to declining patronage and higher delinquency rates from the non-payment of monthly dues that outweighed efforts to maintain operating expenses.
Higher losses exacerbated by the pandemic are expected to make TCI capital deficient by next year.
TCI’s revenues fell by 28 percent in the first half of the year due to COVID-19.