CSi Club Southport
Case Study
Blair Sleeman
General Manager
Located in the heart of the Southport CBD, CSi Club Southport features three bars and a café and offers a range of services from live entertainment to functions, gaming room (including 265 poker machines), and bottle shop.
Formerly Southport Workers Club, in late 2012 the Club found itself in massive debt to the tune of $4 million. The Club was 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 to continue trading. It was clear the Club was not in a position to trade its way out of the situation it was in without a significant change. The Club had just recorded its fourth consecutive loss, adding up to a total trading loss over this time of almost $2.3 million.
The options available to the Club were limited – going into administration or searching for a business partner to assist the Club out of trouble.
After a tender process, the Club decided to partner with HCS, to move forward with stabilising the business.
The agreement was the Club sold the real estate on a lease-back arrangement and enter into a management agreement with HCS with the offer clearing all debt and providing the Club an additional $2 million unsecured loan to help refurbish the Club and set about modernising the aging gaming fleet which all occurred in late 2013.
Under HCS Management, the Club quickly stemmed the haemorrhaging and had turned the business around
In just two years, by 2015 the Club was delivering net profits approaching $1 million – a staggering turnaround after 6 years of trading losses that totalled approximately $5 million.
Profits have continued to grow and by 2017, only 5 years on from facing closure, CSi Club Southport was able to undertake a massive $5.5 millions stage 2 redevelopment. This additional redevelopment is now delivering well over $3 million in annual net profits. The Board is now active in the design and development of a further 2022 Master Plan to further grow and establish the venue as a premium venue on the Gold Coast.
Community Involvement
Living up to their motto of being the ‘friendliest club on the coast’, CSI Club Southport proudly supports both its patrons and community alike. Offering free entertainment, they are also involved with a range of local organizations. CSI Club Southport welcomes requests from entities who provide services in the area relating to disability assistance, environmental care, social welfare, sporting clubs, schools and aged care.
To learn more about HCS and the management support we provide to improve club profitability, please get in touch with our team.