A Failing Business ? Maybe Not.

How many times will we hear this old chestnut from the Chelmsford Muslim Society, “we purchased a failing business for use by the community”. Let’s explore this statement.

Was the business really failing ?

Prior to the sale the club was not a failing business, and was managing to tick over during a period of economic downturn. All the evidence we’ve seen concerning takings and income (from two reliable sources) tells a very different story.

1. Bar Takings. The primary revenue stream for the club. Large functions (like weddings) and nights like the comedy club could take between £2,000- £4,000 in a single night. Smaller but regular nights like the Jive Classes could still take £600 per night over the bar. The last New Years Eve’s Social Disco took over a £1,000 in bar takings.

2. Regular Room Bookings. The club used to be nearly fully booked every week. Just look at an example of a weeks timetable before the CMS took over.

3. Memberships. The Squash and Tennis clubs brought in considerable revenue from court fees and monthly membership (including Junior sections and coaching classes). Pre sale the club had 250 Racquet Members, which could rake in up to £7,500 per month, and 50+ Social Members at £20 per month.

4. Corparate Event Hire. Although not the clubs primary earner. the club used to have regular bookings from the NHS, Essex County Council and other local organisations. It even once hosted BBC Question Time. The club is fully wifi equipped and had a range of Audio Visual equipment for hire. Catering was available onsite. The venue can be configured in a wide variety of room formats.

5. Tenants. The club had two long term paying tenants , the European Buddhist Hanmi Association and Roamers Caterers. Both paid monthly rent (£2,000 combined), but were served with notice to quit shortly after the CMS took over.

6. Social Event Hire. The Hamptons used to be popular wedding venue, and had great caterers onsite. The Main Hall boasts a fully sprung dance floor, elevated stage, lighting system and used to have three licensed bars. The club used to host popular comedy clubs, band nights, wrestling and social dances. Just check out the reviews on Google.

We have reliable infromation that club made a pre tax profit of around £20,000 per month. Less any dividends and expenses paid to directors, this would be enough to consider the business viable.

some points to consider.

• Why were paying members not consulted about plans to close the bars ?

• Why would a new business close it’s biggest revenue stream (the bars) and evict it’s long term tenants ?

• Was the closure of the bars linked to preparations to make the venue an Islamic Centre and mosque ?

• Is this a deliberate attempt to make the business non viable to pave the way for a planning application for an Islamic Centre and Mosque ?