Loch Lomond reduces debt by £95m2nd December, 2013 by Emma Williams
One of the world’s most exclusive golf clubs, Loch Lomond, which posted huge losses and entered administration during the recession, has cut its debt by a staggering £95 million.
The debt reduction may be seen by some as symbolic of an improvement in fortunes for the golf industry.
Loch Lomond, which was reportedly charging £5,000 per year to be a member – on top of a £70,000 joining fee – struggled during the economic downturn, posting a loss of more than £45 million in 2008 alone. By 2011, when the club was bought out by its members, it owed £132 million, mostly to its bank.
Today it owes its bank just £5 million, and its members £32 million.
The accounts show that the golf club made a £2.3 million loss in 2012, a reduction from the £2.7 million loss made in 2011.
Loch Lomond repaid £2.5 million of debt to the bank last year.
The parent company, Loch Lomond Members Golf Club Ltd, a company registered in the Cayman Islands, has on its board Sir Nigel Rudd, the chairman of Invensys, and Scott Murdoch, who has been linked with a board position at Rangers Football Club.