Championship club London Welsh are set to go into liquidation because of an “unsustainable” financial situation.
London Welsh Chairman Gareth Hawkins, said: “London Welsh has reached a difficult point in its illustrious history. Due to a playing budget of £1.7million and gates at games numbering as low 400, the Club’s current business model is totally unsustainable.
“The debts accrued from trading in this way have left the Club with no alternative but to seek liquidation. Having to break that news to 40 staff members yesterday was extremely difficult.
“All creditors of London Welsh Rugby Club will be contacted by the liquidator.
“In the New Year, it is the hope and intention of the Board that London Welsh will be able to return to playing at Old Deer Park, however it will first be necessary to change the Club’s business model to a semi-professional set-up and form a new company, and then raise £300,000 so that the Club can regain a position within the RFU Greene King IPA Championship.
“Richmond have proved that a club can compete in the Championship with a semi-pro model, and I firmly believe we can make this work in 2017.”