The shareholders of Tower Club Inc. (TCI), an exclusive event place and dining area for business executives at the Philamlife Tower in Makati, have decided to permanently shutter the establishment due to its mounting losses.
“It was foreseen that these losses will continue to rise and become more unsustainable because of the [Covid-19] pandemic’s devastating impact on the dining, entertainment and leisure sector,” the company said in a statement.
The said decision was made during the club’s annual shareholders’ meeting last Friday, when they voted to shorten the Tower Club’s corporate life by the end of January 2022.
“The shareholders also approved the permanent closure of the club’s food outlets and gym, which have been closed due to the pandemic” it said.
“The club’s financial statements showed rising operating losses through the years, due to declines in patronage and higher delinquency rates from the non-payment of monthly dues, which outweighed efforts to maintain operating expenses.”
It added that the anticipated higher losses were exacerbated by the pandemic and are projected to make club capital deficient by next year.
Due to the pandemic, the club’s revenues fell by 28 percent in the first half of the year.
“The club, through the years, had implemented measures to boost revenues particularly in banqueting operations, and to collect unpaid membership dues, but the overall drop in income has worsened due to the covid pandemic,” it said.
“The TCI board will work on the Club’s orderly closure and ensure compliance to regulatory obligations.”
Tower Club, which occupies about 2,707 square meters over two floors of the Philamlife, is the one of the preferred venues of businessmen for meetings, corporate launches, social functions and fine dining. Members have access to two private dining rooms, two world-class restaurants and a bar of international standards. It also has a fitness center and spa.
It was established in 2001 as the sole executive business club in the Philippines and is owned by TCI, which was incorporated in August 3, 2001. The club is managed by Asia’s Unique Resort Alliance (AURA) Hotels and Resorts and is governed by a board of governors, which consists of local senior executives.