Rotorua RSA forced to close its doors

Rotorua RSA is to cease trading at the end of the week and consider options for its future.

The RSA closure will mean the loss of 11 jobs.

“The decision wasn’t made lightly and I feel for our affected staff,” RSA president William McDonald said. “However, like a number of RSA’s around the country, we have been losing money over the last few years. In our case, the ongoing losses are no longer sustainable and the RSA can no longer continue to operate in its current form.”

In June the RSA resolved to cease trading operating in its current location and to place the building, which it owns outright, on the market for sale. The proceeds from the sale will be used to pay off debt and work towards a sustainable future model.

A short-term loan from Rotorua Lakes Council will enable the RSA to pay off some of its debt immediately while it considers its future. The loan will be secured against the RSA building, at no cost to the ratepayer.

A number of options to temporarily merge with other clubs are being investigated and it is hoped RSA members will soon have an alternative venue to patronise.

“Next year, Rotorua RSA will celebrate 100 years,” Mr McDonald said. “We’ll reach our centenary, and beyond. However, what we look like, where we are, and how we operate could be very different.”

Mr McDonald said the RSA had received a lot of support from individuals, groups and businesses both locally and nationally. “The support has been humbling, and it’s that support that has kept us going through this difficult time.”

The Council loan, plus interest, will be fully paid following the sale of the RSA building.

“Following an approach from the RSA for assistance and wanting to ensure there is a future for the RSA in our community, our Council approved a one-off short-term loan, secured against the RSA building,” Rotorua Lakes Council Chief Financial Officer Thomas Colle said.

“The matter was dealt with as a confidential matter due to the commercial sensitivity involved. There will be no cost to the ratepayers and the loan will be fully paid, plus interest.

“The RSA needed to cease trading to halt its losses and avoid insolvency or receivership. Our Council did not want to see that happen – the RSA is seen as an important part of our Rotorua community.

“Council’s assistance will ease their transition, enable them to clear their debt and work towards finding a long-term, sustainable solution for their organisation.”

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