The club
The Aeroclub (social part) ran well in the 1970s and 80s as an "exclusive" club where the more wealthy elderly residents of Darras Hall etc. could go for a quiet drink and socialise with similar people. Many of the elderly ladies pitched large amounts of money into the gaming machines on a regular basis. They also liked the ambience of the dining room and were able to get very good meals there at sensible prices when Rene and Beryl still held sway there. Not many of these people were actually pilots but they liked the prestige associated with belonging to such a club. Sadly most of this clientele have now passed away or are too infirm to attend any more but these were the people who kept the profits of the bar etc. up.
When I began flying at Newcastle there was a "rest area", for want of a better description, where we've recently had an instructor's room and people sat in there before and after flying discussing flying (among other things)with older and wiser pilots, gaining from their experience, forging freindships and drinking coffee. Then when the bar opened (different licensing hours) went in and continued their chats over alcohol and, often, a game of pool.
In recent years, when there was no longer that rest area and everything ran out of the refurbished office, most people seemed to go flying, pay their bill, have a brief chat and go, the relaxed atmosphere of the rest area was lost and I think it was this relaxation and the things we could learn from each other which encouraged many people to adjourn to the bar. One thing led to the other...but once that area was gone, the atmosphere it created did not seem to be acheivable.
These, I think are the reasons for the social side's demise.
As to the flying side...I'm afraid its down to, at least, mismanagement, at worst...I'm not sure.
I'm sure of one thing though...it certainly won't be the club we've know if mq buys it.