Engineers' social to close doors as income and membership falls

But amidst the sadness of the 100 or so remaining members of the Royal Engineers' Club as it prepares to close its doors, there is at least some consolation . . . the estimated 1.1 million proceeds of its sale will also be shared out between them.

The New Town club, based in a five-storey townhouse in Great King Street, has seen its income dwindle over the years as its membership has shrunk.

Organisers said the final nail in the coffin for the club's cash flow came when – despite being housed in such an expensive property – it went just a few pounds into the red and the bank withdrew its overdraft.

Founded in 1927 by former Royal Engineers servicemen, it charges a modest 15 a year for membership, or 7.50 for pensioners. In its heyday membership topped 200, but with few youngsters replacing the old hands, the committee decided to call last orders.

Secretary Alan Gibson, 59, explained: "We're not getting enough income and I think that's probably why the bank worried. It was between 4 and 5 over our overdraft, and they bounced a direct debit, for which they charged us 30, and the people that they bounced the direct debit to charged us for having to present it again.

"They withdrew our overdraft, which meant that if our account wasn't in credit they wouldn't pay our suppliers. They probably hastened what was going to happen anyway, but I really thought they might have given us a chance to speak to them."

With no overdraft and a dwindling income, he said they would struggle to maintain cashflow and decided to sell up. He said the final proceeds from the sale of the building would be divided between members according to how long they had been in the club after debts and bills had been paid.

Despite the prospect of a pay-off of thousands of pounds, members say they will be sad to see the club call last orders.

Member Gordon Williamson, 58, said: "It's gone from being quite busy when I joined about 20 years ago and now it's just ticking over, never making a huge amount of money. It's just a nice convivial place where there's no noise or juke boxes."

Chairwoman Susan Gibson added: "We're going to try and find somewhere else we can meet up, because it's a friendly place – it's not just a club, it's a group of friends."