The Regina Boxing Club, founded in 1949, can no longer make loan or lease payments, according to president George Goff.

"We're in a situation where our expenses far exceed our revenue," Goff said. "We can't make payments on a loan and on lease payments, so we're in a position where we just can't pay the bills."

Goff said he got an email from the bank regarding a loan—​taken out for renovations to the club's new facility they moved into in 2014—​that was due at the end of November.

He said he figured the bank was aware of the club's financial situation and knew they were unable to cover a payment since overhead costs were just too high.

Goff said the facility's landlord sent the club a letter at the end of November asking for a lease payment by Tuesday, December 18.

"We're of the opinion we can't make payment, so I guess they're going to do what they're going to do," Goff said.

Goff said former Regina Mayor Pat Fiacco—who was actively involved in the Regina Boxing Club's board and is still listed as a director—recently and suddenly resigned from his duties.

The club posted a notice on its door indicating the club would close permanently on Sunday, December 16, 2018. (Bryan Eneas / CBC News)

Local martial arts club impacted by closure

Queen City Martial Arts were subletting space in the facility from the Regina Boxing Club.

According to Joe Bossenberry, co-owner and head instructor of the Jiu-jitsu club, he was given 12 hours notice about the closure.

"We were kind of an innocent bystander in this situation, we really had no stake in it," he said.

"We paid our rent, we did everything we were obligated to and we had absolutely zero control over the situation that is now happening."

He said the club is currently in the process of finding another facility.

Queen City Martial Arts was already in the process of looking for a new location according to Bossenberry, since the club had outgrown the current facility and their lease was up in the middle of 2019.

"We planned, obviously to phase it in slowly so it didn't disrupt our business, and now we're in a spot where we have no choice, we have to shut down business for a little while," he said.

Bossenberry said he would like to have his operation back up and running in early 2019, hopefully in January, but he said February is a "more realistic goal."

He said support from people within the club has been "fantastic" and members turned up on Thursday night to help move equipment from the facility.

With files from Geoff Leo