Avana will continue to run Beresfield Golf Course and hopes decision will not lead to bankruptcy

Having recently been advised by the operators of Beresfield Golf Course, Avana Pty Ltd, that they intended to abandon their lease of the City of Newcastle-owned facility as of 31st August, concerns raised by the council have led to the contractor releasing a statement blaming the council for not offering financial assistance.

Avana released the following statement on their Facebook page for the Beresfield Golf Course, advising "due to the failed negotiations with Newcastle City Council for financial assistance Avana will continue to run Beresfield Golf Course. And will do it's best to maintain the course in the unprecedented weather conditions. We will hope that the current financial strain on the business does not lead to bankruptcy. We will continue to work with NCC and hope they fix all the structural damage to the course as per the lease arrangement. As quoted from an NCC employee from the commercial property sector ‘Council doesn't care if a leaseholder goes bankrupt’. Here's praying for a brighter future and compassion from NCC.”

A council spokesperson said on Friday afternoon that City of Newcastle had issued a notice to Avana "notifying them of their breach of their lease by threatening or ceasing to trade".

"CN has provided Avana with an opportunity to remedy the breach (i.e. keep trading) in a reasonable time frame.

"If Avana continue trading, then the lease continues to operate in accordance with the terms agreed to by both parties in 2020."

City of Newcastle advised that it was bitterly disappointed by Avana’s decision, which comes just two years into a five-year lease offered to, and signed by, Avana in 2020 following a review of their business plan and financial statements.

Despite returning healthy profits for the past five years, Avana approached City of Newcastle in June 2022 requesting the early termination of their lease citing financial difficulties and operational constraints imposed by the continued wet weather.

City of Newcastle advised they endeavoured to work with Avana on a feasible solution that would ensure the continued operation of Beresfield Golf Course for the community.

However, Avana reportedly responded with an unacceptable proposal that sought to shift the costs of operating and maintaining the facility onto Newcastle ratepayers, while Avana would still benefit from the net profits.

Avana has also written to the members of the Viney Creek Golf Club to advise them of their decision to abandon their lease. City of Newcastle was extremely concerned by a number of false claims made in that communication.

Despite the assertions in their communication to members, the Viney Creek Golf Club does not 'belong' to Beresfield Golf Course, it is owned and run by Avana Pty Ltd and was set up by that company in November 2016. As such, members concerned about club memberships paid just two months ago should speak with the owners about a prorated refund.

Council also advised that an additional claim that the competition schedule will continue to operate post Avana's departure from the course is also false. Having been given just two weeks' notice of Avana's intention to walk away from their lease, it is not possible for City of Newcastle to secure another operator for the club within this time.

Images courtesy facebook.com/beresfieldgolf