A special general meeting was held on Sunday to determine the fate of the Gerald St business, which club members were told had lost money for the past two years.
Club officials painted a gloomy outlook for the future with difficult trading conditions combined with being told by its landlord the lease would not be extended beyond 2029.
The landlord said the hotel had been brought into “disrepute” over its liquor licensing issues.
Police and the council liquor licensing unit had opposed the pub’s licence renewal, prompted by issues with university student-focused events, and the Mr Grouse contest.
The pub eventually kept its licence with conditions. But it cost about $70,000 in legal fees, impacting on the profitability of the pub, members were told.
The Lincoln Club has operated the business at the Grouse since 2009 under the motto ‘the club in a pub’.
The business is operated through its company Famous Grouse 2009 Ltd.
The meeting was robust, and sometimes testy, as members asked questions about the pub’s finances and why it had got into trouble over the past two years.
Early into the meeting, a call was made from the floor for it to be adjourned until details of the Famous Grouse 2009 Ltd accounts were given to members to consider before any vote was taken.
The meeting continued and the member who raised the issue did not pursue an adjournment.
The Lincoln Club will continue to exist, but when the lease is sold it won’t be the operator of the Grouse.
That is likely to be headed by Shaughn McNabb, who owns the Bush Inn Tavern, Upper Riccarton, in partnership with Crusaders halfback Mitchell Drummond.
Drummond is also understood to be involved in the purchase of the Grouse lease.
Lincoln Club president Brian Humm said due diligence was continuing and part of that would involve discussion over whether the club would still be able to host its Tuesday club nights at the Grouse, and other benefits for members.
It was hoped the club will operate again in the future at another location.
McNabb, who plays rugby for Lincoln, was introduced to members at the meeting.
Humm told the meeting selling the lease now would mean a better price than if the club left it until closer to 2029.
Delaying a sale would impact on and potentially drain the assets of the Lincoln Club.
The club owns the Grouse’s car park, which is likely to be leased to the new owners. It is part of the due diligence process.
