Coventry Rugby Club have issued a statement via their website they are to close the club.
The following statement was issued by Chairman Andrew Green has appeared on the club's website.
It is with great regret that Coventry RFC Limited has announced today that it has taken the decision to close the club. Over the past three years the club has tried to overcome many problems and set itself a secure future, unfortunately due to many issues, some inside and some outside of its control, this has not been possible.
The club, like many other sporting organisations, has struggled as a result of the changing economy; however the club has been involved in complex legal problems and as a result doesn't even have a lease to be at the Butts Park Arena. This situation has arisen despite promises and assurances from various financial organisations to provide the club with a lease after action was taken over a year ago to resolve the problems.
The club simply cannot carry on with such an uncertain future. The club has debts and creditors that it has a responsibility to pay and has carried on because of promises and solutions they would bring. Unfortunately and unlike most companies the club doesn't have any options to re-finance despite several interested parties/investors offering funding. This is because it doesn't have a lease for The Butts Park Arena, 8 acres of public land that was given to the club for its financial future some 6 years ago by Coventry City Council.
This is a very sad day for rugby in Coventry; however the club just can't ignore the present situation regarding its debts and creditors.
The statement was withdrawn from their site just before 6pm.
The BBC understands that the club has been put in to creditor voluntary liquidation. BBC Coventry & Warwickshire are reporting that: "It is believed that the club's advisory committee are looking to go along the route of administration rather than liquidation.
The RFU has been notified of Tuesday's announcement by Coventry chairman Andrew Green.
And a meeting has already been arranged between former England full-back Peter Rossborough, Coventry's president, and RFU chief executive Francis Baron at Twickenham on Wednesday afternoon to investigate how to keep the club sustainable."