3 days ago
Local investor eyes acquisition of Singapore private club 1880 amid Hong Kong branch collapse
[SINGAPORE] A local investor is looking into the potential acquisition of Singapore private club 1880, following the sudden closure of its Hong Kong branch last Friday (Jun 6) – just seven months after opening in the territory.
A source close to the matter told The Business Times that the potential buyer is 'in the very early stages' of doing due diligence, and sees the Singapore club as 'a viable and very decent' business. However, its ambitious expansion to Hong Kong has impacted the entire group.
1880 was founded in 2017 by Canadian entrepreneur, former adman and child actor Marc Nicholson, who has lived here since 2002. The club's luxurious 22,000 square foot space on the third level of InterContinental Singapore Robertson Quay was conceived by star British designer Timothy Oulton. Its name, 1880, refers to the decade Robertson Quay was founded.
1880 founder Marc Nicholson at the escalator shaft – designed to look like a giant kaleidoscope – leading to the club. PHOTO: BT FILE
The club has since established itself as a hub where individuals can come together for discussions on topics ranging from global conflicts to social justice – just like the weekly gatherings of opinionated individuals that Nicholson's bohemian-minded parents used to organise in Montreal. There are about 100 to 150 programmes a month, including talks and dinners meant as platforms for social interaction and debate.
The Hong Kong branch started operating in November last year. But unlike the Singapore version, part of it is open to the public. The club was also to have expanded to a six-storey beachside hotel it was constructing in Bali, but that business never opened.
Citing former employees, the South China Morning Post (SCMP) said 1880 Hong Kong had about HK$20 million (S$3.3 million) of debts. It is now facing a probe by authorities after owing 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.
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SCMP reported that each member in Hong Kong had to pay 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 email to its Hong Kong members, Nicholson said the company had 'run into cashflow difficulties' and had not been able to recover from them. 'We have made every attempt to raise funds to continue the operations but were unsuccessful,' he wrote.
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.
Separately, in a letter to employees, Nicholson acknowledged the failure to secure new funding and apologised.
In Singapore, the source told BT that 1880 is still able to pay its employees here and make partial payments for rent and to suppliers. Work is underway to fully understand how extensive its liabilities are – including the potential impact of Hong Kong members using the Singapore club.
'From a standalone perspective, without the burden of the Hong Kong branch, the business in Singapore can sustain itself,' says the source. 'It's not as toxic as it is in Hong Kong.'
BT understands that there are over 2,000 members in Singapore and membership fees are reported to be S$5,000+, with monthly fees of $180+.
In a 2019 interview with BT, Nicholson said he was looking to attract a maximum of 2,000 members. 'A sufficient base of members who come frequently, use the facilities and bring their guests will keep us profitable,' he said, adding that the club here has seven business units, including a restaurant, bar, spa and co-working space.
'And if each of these is profitable, turning a 10 per cent or so, that can cover the rent, cost of goods sold, staff wages and so on.'
Should the club be acquired, the source said the potential buyer plans to retain its brand and focus on running the business properly with fresh capital and new ideas.
