The operator of Beresfield Golf Course has vowed to keep trading after City of Newcastle issued a media release on Friday announcing the company would abandon its lease next week.
The council said on Friday morning that it was "bitterly disappointed" Avana Pty Ltd had given notice it would stop renting the council-owned course on August 31, two years into a five-year agreement.
The course operators posted a statement on Facebook at 11.30am saying they would continue to run the course.
"Due to the failed negotiations with Newcastle City Council for financial assistance, Avana will continue to run Beresfield Golf Course," it said.
"And will do its best to maintain the course in the unprecedented weather conditions.
"We will hope that the current financial strain on the business does not lead to bankruptcy."
Avana took over leasing the course in 2015.
The Newcastle Herald reported in 2017 that Avana had started a new club called Viney Creek after a dispute with Beresfield Golf Club members over who would pay for improvements.
The council said on Friday that Avana had approached City of Newcastle in June 2022 seeking an early termination of its lease "despite returning healthy profits for the past five years".
"CN endeavoured to work with Avana on a feasible solution that would ensure the continued operation of Beresfield Golf Course for the community," the council said.
"However, they responded with an unacceptable proposal that sought to shift the costs of operating and maintaining the facility onto Newcastle ratepayers, while Avana would still benefit from the net profits."
A council spokesperson said on Friday afternoon that City of Newcastle had issued a notice to Avana "notifying them of their breach of their lease by threatening or ceasing to trade".
"CN has provided Avana with an opportunity to remedy the breach (i.e. keep trading) in a reasonable time frame.
"If Avana continue trading, then the lease continues to operate in accordance with the terms agreed to by both parties in 2020."
The council said Avana had made "a number of false claims" in a letter to Viney Creek Golf Club members advising them of its decision to abandon their lease.
Avana said in its Facebook post that it would "continue to work with NCC and hope they fix all the structural damage to the course as per the lease arrangement".
"Here's praying for a brighter future and compassion from NCC," it said.
The council spokesperson said that, under the terms of the lease, Avana and not City of Newcastle had an obligation to repair and maintain the course.
The club has more than 150 members.
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