Singapore private club 1880 eyed by at least two potential buyers; one linked to a sovereign wealth fund
[SINGAPORE] At least two parties are now looking into the potential acquisition of Singapore private club 1880, one of which is said to be linked to a sovereign wealth fund. The other is a local investor who plans to retain its brand and inject fresh capital and new ideas.
A source told The Business Times that the local business continues to be profitable and successfully run. 'If you go on a Friday night, you can't get a seat,' says the source. 'It is packed and revenue is coming in.' But there are 'many creditors' due to a mismanagement of the club's expansion to Hong Kong and Bali.
1880 has been in the news following the sudden closure of its Hong Kong branch on May 30 – just seven months after opening in the territory. The club was also building a six-storey beachside hotel in Bali, but that business never opened.
The question now, says the source, is whether the club goes into receivership or a deal is done with its debtors. 'The potential suitors are studying all possibilities,' says the source.
1880 was founded in 2017 by Canadian entrepreneur, former adman and child actor Marc Nicholson, who has lived here since 2002. The club occupies a luxurious 22,000-square-foot space on the third level of InterContinental Singapore Robertson Quay. Its name, 1880, refers to the decade Robertson Quay was founded.
1880 has established itself as a hub for individuals to discuss topics ranging from global conflicts to social justice. There are about 100 to 150 programmes a month, including talks and dinners meant as platforms for social interaction and debate.
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The Hong Kong branch started operating in November last year. But unlike the Singapore version, part of it is open to the public.
A report by the South China Morning Post said 1880 Hong Kong had about HK$20 million (S$3.3 million) of debt and owes wages to over 100 staff. The club is also in rental arrears, having taken four storeys in Swire Properties' Two Taikoo Place office complex in Quarry Bay.
Each member in Hong Kong reportedly paid a joining fee of around HK$24,000 and a monthly subscription fee of HK$1,300, or HK$14,000 for a full year.
In an e-mail to its Hong Kong members, Nicholson said the company could not recover from 'cashflow difficulties' and was unable to raise funds to continue operations. He said 1880 Singapore will retain its brand and 'continue under a new group'. 1880 Hong Kong's members will be granted a one-year overseas membership to the Singapore club, as well as all reciprocal clubs around the world.
The source had earlier told BT that 1880 is still able to pay its employees here and make partial payments for rent and to suppliers. But it is unclear if indeed its Hong Kong members will get to use the Singapore club should it come under new ownership, and if so, what the potential impact of that will be.
BT understands that there are more than 2,000 members in Singapore, and membership fees are reported to be around S$5,000, with monthly fees of around S$180.
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