Championship holders Jersey Reds have announced that they have "ceased trading" due to financial issues.

The club, who have played in the second tier of English club rugby for the past 11 years and won the title last season, officially ended their trading at 5.30pm on Wednesday having acknowledged that they would not be able to pay their players and staff September's wages, which are due this week.

A statement from the Reds admitted that "liquidation appears inevitable unless a solution can be found in the very short term".

Jersey's government had provided £370,000 in short-term grants in an attempt to keep the club going until a new investor was found, but costs from COVID-19 and reduced funding have now caused them to become the latest English rugby club to collapse.

"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," chairman Mark Morgan said in a statement.

"At one stage at the end of last season it appeared there was a viable way forward for the second tier once the new Professional Game Agreement was implemented from summer 2024, but Championship clubs have been left in the dark since that point and this led to a growing fatigue among those who may have invested, but could not be given any concrete assurance about when the new structure would come in, or how it would be funded.

"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 Rugby Football Union (RFU) also released a statement following the news: "It is extremely disappointing that investors would take decisions at this early point in the season to place the club in such a position.

"Championship clubs had clear confirmation from the RFU on funding for the 2023-24 season and we have been working with the Championship and Premiership Rugby on the new Professional Game Partnership and shape of Premiership 2 with funding levels to be confirmed at the end of this calendar year.

"The Championship has been fully involved in these discussions since February which are aimed at stabilising and strengthening the professional game."

Jersey Reds director of rugby Harvey Biljon told BBC Channel Islands: "Right now I'm just shocked. We have categorically stayed in our lane, we've not overspent, we have worked within budget.

"We don't pay extortionate wages, the average [yearly] wage across our playing squad is £25,000, so I'm just absolutely shocked that we're champions of the Championship and we're in this situation."

Jersey's scheduled match against Cornish Pirates this Friday has now been called off, while the club's positive start to the Premiership Rugby Cup - which had seen them thrash London Scottish and claim a famous win at Bath - is now likely to count for nothing.

The Reds are the fourth English rugby club to collapse within the past year, following Worcester Warriors, Wasps and London Irish through the trapdoor. body check tags ::