Wasps have sacked 167 staff after becoming the second Premiership club to be forced into administration in three weeks.
The Coventry club were suspended by the Premiership last week.
It has now been confirmed that they have suffered the same fate as their Midlands rivals Worcester and will be relegated.
But Arena Coventry Limited, the company that manages the Wasps-owned Coventry Building Society Arena, is poised to avoid going into administration.
While Wasps Holdings Limited is the company that has actually gone into administration, ACL, which is also part of Wasps, has filed a new intention to appoint administrators at the High Court in London.
This would give ACL, which has a lease from Coventry City Council, a fortnight’s grace to operate the stadium, which would give it time to find more funding.
The council could now allow the CBS Arena to continue operating, with the stadium’s tenants still able to host Coventry City’s Championship home games, along with other events.
Meetings were held at 2pm BST on Monday to inform players and staff at both the CBS Arena and Wasps’ training ground in Henley-in-Arden.
Wasps Holdings Limited in administration
Wasps Holdings Ltd is the holding company for Wasps Men, Wasps Ladies, Wasps Netball, associated coaching and support teams and their respective academies and pathways.
Andrew Sheridan and Raj Mittal, partners at specialist business advisory firm FRP, have confirmed that Wasps Holdings Limited has ceased trading with immediate effect and has been appointed as joint administrators.
“Unfortunately, the appointment required the joint administrators to make 167 employees redundant, including all members of the players’ squads and coaches,” the statement read.
“A small number of employees have been retained to assist with the orderly winding down of the company and the operation of CBS Arena, which is unaffected by this administration and continues to operate as normal.”
More to follow.