London's trendy Groucho Club gets the blues

The art on its walls may be in the books at more than £300,000 (Dh 1,672,640 ) and there may be a two-year waiting list to join its 4,000-strong membership list, but London's trendy Groucho Club is still deeply in the red.

According to its latest accounts, the Soho club's losses rose to £2.27 million (Dh12.65 million) in 2009 from £2 million (Dh11.15 million) while turnover dropped, partly due to a two-year refurbishment programme which saw a number of bedrooms and function rooms closed off for long periods, and the club itself shut down completely on occasion.

Beloved of Lily Allen and Sienna Miller, the Groucho recently celebrated its 25th anniversary, and believes its celebrity-laden membership list will see it through the financial downturn. The directors said: "The main risks faced by the company are the same as those affecting other leisure business operators, which is the adverse affect the recession is having on consumer and business expenditure. However, directors believe that the business is protected from such events by the unique nature and longevity of the membership."