Case Study: Labour and Working Men’s Clubs

Working men’s clubs or Labour clubs are most commonly set up as either Friendly Societies or Industrial and Provident Societies.

Because of this it is often very easy to place a working men’s club or a labour club into liquidation or administration providing sufficient numbers of members with voting rights agree with the committee’s decision to follow a formal Insolvency Act procedure as recommended by an Insolvency Practitioner.

However despite liquidation seeming like a simple process, the nature of these clubs means it can be quite difficult to achieve. Nearly every single working men’s club and labour club has been in existence for such a long time that there is an incredibly high degree of emotional attachment to the club and its history, many of which will come from happy memories of important family or community events that took place, or for some it is the place they have always gone on a Friday night for the last 40 years.

This is where you benefit from our experience and care. We understand how difficult it is, how many members find it impossible to accept that their club must close and how they will not appreciate the reality of personal risks the management committee faces. In a manner almost identical to that in which we will deal with the management team, we explain to members with great care and in plain English the position, the options and consequences of each one so they understand there is no alternative but to take the action you will be recommending.

Closing down a working men’s club or labour club doesn’t always need to be bad news. We assisted in the liquidation of a working men’s club 2 years ago when the management committee were faced with the position where the incumbent brewery refused to supply any more beer. The closure wasn’t initially popular, but once we helped members realise that not only would placing the company into liquidation result in:

  • all local suppliers being paid in full; and
  • all members receiving a return; and most pleasingly
  • the sale of the building and land would (and did) allow the construction of affordable housing for local residents

their objections were overcome and the liquidation proceeded smoothly.

If you find your working men’s club or labour club isn’t looking as healthy as it, possibly through falling income levels or rising costs, or maybe you consider it to be beyond the point of no return, call Kevin Lucas today on 0330 900 2000 to talk about all of your possible options and work out what to do.