Auckland University Students Association (AUSA) is facing financial trouble, thanks to questionable dealings by the University of Auckland over property housing AUSA and it's ventures, like BFM, and Shadows.
Craccum has published a piece "Death Bells Ringing?" on the issue...
AUSA built the Student Union building (which houses BFM), but in the early 2000s, the University decided they owned it. "... It argued that regardless of who had paid for the building, the fact that it was on university land meant the university owned it." The University eventually settled out of court with AUSA, but has to date stalled repeatedly in paying the agreed settlement in full. It appears like the University has manoeuvred AUSA into a corner.
Now, if one of AUSA's businesses is declared insolvent, ownership of the buildings goes to the University. And BFM will be charged commercial rates, or have to find a new home. Or possibly be sold off by AUSA to raise funds to make up for lost income.
UPDATED Nov 2, 2012 - Bacchid Benevolency Ltd has gone into receivership This is 100% owned by AUSA and means that Shadows is now shut. A liquidator was appointed 31 October.
If the opinion piece quoted above from Craccum is correct, the property housing Shadows now falls under the ownership of the University of Auckland, not the AUSA.