Benefactor's illness brings end for Poverty Bay Club

A Gisborne businessman behind a number of high profile events and the restoration of a historic landmark, the Poverty Bay Club, has relinquished control of his companies.

Dean Witters is suffering severe health problems and has appointed a group of Gisborne businessmen to control his various interests, said Auckland accountant Malcolm Innes-Jones.

The Poverty Bay Club - built in 1898 and a former gentleman's club - closed yesterday, affecting several wedding receptions that were booked at the venue.

"I've had to make some difficult decisions and one of them was the Poverty Bay Club, which the family had severely subsidised for years," said Mr Innes-Jones.

Up to 15 jobs had been lost, said the businessman's son, Andrew Witters.

Another business, the Tatapouri Camping grounds, will be put up for sale.

There were still decisions to be made about other businesses that were not performing but Mr Innes-Jones would not identify them out of fairness to staff.

The New Year's Eve party event Rhythm and Vines and the wine and food festival Taste Gisborne were profitable and would continue to run, he said.

Mr Innes-Jones would not reveal the number of creditors, who were told this week about the decision, or how much was owed.

"I'm working through a process that will take some time, but based on valuations of experts there is miles of assets to pay the creditors, subject to market realisation."

Mr Innes-Jones said creditors "would support the family while we resolve the situation".