Lord Ashcroft’s Devonshire Club at risk of closure as coronavirus stalls takeover
An exclusive private members’ club co-owned by Tory peer Lord Ashcroft is fighting for survival after a planned takeover deal collapsed due to the coronavirus outbreak.
The Devonshire Club, close to Liverpool Street station in the City, had agreed terms with an unnamed buyer, with the deal set to complete this week.
However, the firm said the buyer withdrew at the eleventh hour, stating that current economic uncertainty and the growing impact of coronavirus on the leisure industry made it “too challenging to complete the investment”.
In an email to members, seen by City PM, general manager John Hanna confirmed the company had appointed administrators Duff & Phelps to advise on its future.
“The board has also had lengthy negotiations with the club’s landlord with regards to their support to their business and would seek their support for the future continuation of the club,” he said.
The Devonshire Club, which opened in summer 2017, charges members £2,300 per year for access to its 68-room boutique hotel, brasserie and champagne bar.
The exclusive haunt, unveiled following a £25m makeover of 18th century warehouse buildings on Devonshire Square, offers customers the “luxury and glamour” of a West End club combined with the “style and panache” of the East End.
It has proved popular with celebrities and politicians alike, with Dancing on Ice star Caprice Bourret and Samantha Cameron among the guests pictured there.
However, the club has struggled to profit from its success, with its latest accounts showing a pre-tax loss of £5.6m on revenue of £8.1m in 2017.
Now the club’s financial troubles, first reported by the Sunday Times, could force the company to close its doors for good.
The private members’ club is among a string of investments made by Ashcroft, a former deputy chairman of the Conservative Party who has amassed a fortune of roughly £1.3bn.
Since the 2010 General Election the Tory peer has also risen to prominence as a pollster, publishing his research online.
The Devonshire Club said it would continue to operate as normal and update members as and when there were further developments.
Main image credit: Devonshire Club