Earlier this week, an application from the United Services and Community Club Trust, the charitable trust that runs the club, to put the trust into liquidation was granted in the High Court at Dunedin.
Insolvency Management has been appointed the liquidator and has begun the process of winding up the trust.
Part of that process is likely to be the sale of the trust's main asset - the clubrooms on the corner of Prince Albert Rd and Bay View Rd, next to the Montecillo Veteran's Home and Hospital in St Kilda.
Trust chairman Paul Chamberlain said the liquidation of the trust was "unfortunately" symptomatic of similar clubs and organisations that were struggling on low memberships and membership fees.
"Trading has not been so flash. The club simply couldn't sustain keeping a bar and dining room open for the amount of people that were using it."
He wanted it to be clear that most club members were actually members of the RSA and Ex-Royal Navalmen's Association, and those memberships were still valid.
There were only "a handful" of people who were direct members of the United Services Community Club and their $41 annual membership fees were now in the hands of the liquidators.
The RSA and navalmen's association would be the ultimate beneficiaries of any money left over after the trust had been wound up.
How the trust's affairs were resolved was entirely up to the liquidators, Mr Chamberlain said.
Ian Nellies, of Insolvency Management, said liquidators were still working through the information, but there were some creditors owed money and the best way to meet those debts was to realise the trust's assets, the main one of which was the building.
He expected all the creditors would be paid "in the fullness of time", but when that was would probably depend on the sale of the building, which was also mortgaged.
He hoped the building would be on the market soon, but there were "a few things to work through" first.
There would be no access to the building during the liquidation process, however, liquidators did not see memorabilia in the building as assets of the trust, and would be looking to return it to the appropriate parties, he said.
Dunedin RSA president Alan Goding said RSA members used the Prince Albert Rd building every day for functions, club meetings, dances and other events, but no-one had been inside since the doors were locked about a month ago.
If the RSA no longer had access to the building, it would have to find other meeting and function rooms, he said. The organisation's options would be discussed at an executive meeting on Monday night.
Navalmen's association Dunedin branch president Brian Heads said the association had a lot of history with the building, and equity tied up in it.
Members had used the premises regularly, but were now "sitting back" and waiting for the liquidation process to be completed before deciding what to do next, he said.
