In April 1978 the coast was lashed by cyclone Alby, which sped up the erosion problem that had been threatening for many years. Thousands of dollars were spent attempting to save the building but to no avail. The building was not considered worth saving and ultimately needed to be demolished.
In 1979, the controversial question arose as to whether new clubrooms should be provided. The City Council wanted the members of Floreat to consider amalgamating with the City of Perth Club, a decision that would have been hard to swallow given the past history of the club. A small group of ardent Floreat supporters and members got together and lobbied for the continued existence of Floreat SLSC and after several years and much deliberation the Council generously allocated approximately $370000 to build new clubrooms, further away from the waters edge and north of the Floreat kiosk.
The members occupied the building as from the first of January 1981. The clubrooms were then the envy of all the W.A. clubs and it was the members who basically designed the building in consultation with Johnston & Crystal, the Architects.