Things at The Federal Club, a financially beleaguered Arnold Palmer designed golf course just outside Richmond, VA, are going from bad to worse. The former private club in a planned golf community, whose course cost $9 million to build, was considered one of the most promising projects in the area just five years ago.
But after trying just about everything, including opening up for public play and declaring bankruptcy for the purpose of reorganization, The Federal Club is once again on the ropes, according to the Richmond Times-Dispatch. Its major creditor, Essex Bank, is asking the court to remove the club from protection in order that the bank may take it over. The bank charges that the club’s owners have used cash from the club’s meager operations to pay other creditors.
The owners say the bank had a plan from the moment bankruptcy was filed to take over the club. They say they have added 20 new members recently by offering joint club membership with another local course. The court will rule later this month.