RSA moves to protect assets

New Plymouth's RSA is taking steps to protect its assets after companies owned by the men who bailed out the financially troubled organisation have gone broke.

Auckland businessman Steve Crow and his brother David, of Inglewood, bought the Strandon clubrooms for $1.9 million in July 2008, as part of a rescue package to save the organisation which was in danger of going broke.

Since then a softening in the porn industry has seen several of Steve Crow's companies go into liquidation and earlier this month David's building company, Buildwise Ltd, was placed in liquidation. The brothers intended to put a $20 million development on the site. Yesterday Steve Crow said the liquidation of the companies would not affect the proposed development.

"It was never intended that David's business would do the physical work, he will just project manage it," he said.

Working on getting the development started was well under way.

"The floor plans have been finalised and the detailed plans have been finalised." Mr Crow would be in New Plymouth to go through the plans with his brother and the plans would then go to the New Plymouth District Council for resource consent.

He hoped that within three months physical work on the site could begin.

The reassurances have not been able to stop jitters within the club.

RSA president Graeme Lowe said he had been given no definite date for the development to start.

The club has the option to buy back its clubrooms from the Crow brothers, which it wants to protect in case of financial trouble. "To put our minds at ease and ensure the future."

Mr Lowe said the club was trying to arrange a meeting between its lawyers and the Crows' to ensure the club's assets were protected.

"It is a worry, I would be a liar if it said I wasn't, that's why we are making sure that we are safeguarded," he said.

- © Fairfax NZ News