Jersey Reds cease trading, unable to play Premiership Rugby Cup fixture as liquidation looks 'inevitable'

Jersey Reds have announced that they have ceased trading just a day before the club were due to take on Cornish Pirates in the Premiership Rugby Cup.

The Channel Islands-based side, who won the RFU Championship last season, released a statement on their website confirming the news as well as revealing that the club could liquidate.

They wrote: “Jersey Reds regret to confirm that the club ceased trading at 5.30pm on Wednesday September 27th and is exploring the way forward. However, liquidation appears inevitable unless a solution can be found in the very short term.”

The news comes amid continued financial woes for the sport, which has impacted several clubs including the now former Premiership sides Worcester Warriors, Wasps and London Irish, who all entered administration.

Jersey Reds informed players and staff that they would not be able to pay September salaries, and wouldn’t be able to travel to face Cornish Pirates.

Reds chairman Mark Morgan said: “We had been able to start the season and maintain sufficient funds to cover the summer, but regret that our conversations with potential new investors as well as existing ones have been unsuccessful.”

He added: “There are a large number of players, coaches and other members of staff who have made huge contributions to the club in recent seasons, and we regret that the massive effect this will have on all of them – it’s a very sad day.”

The Reds stormed to the Championship title last season with 100 points and losing just one game, although weren’t promoted due to a pause implemented by the RFU aimed at helping clubs meet the required standard.

Jersey had also won two of their first three Premiership Rugby Cup games so far this season.

Rugby’s financial issues saw London Irish receive a winding-up order in June over an unpaid tax bill, resulting in suspension from the English league pyramid.

Worcester Warriors were expelled from the Premiership last season and although the club have new owners, it is unclear when they will compete again.

Wasps had intended to play in the Championship this season but had their licence withdrawn by the RFU in May after failing to meet the required commitments following a takeover.

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