A second top level Rugby club has collapsed due to unpaid Business Debts. Wasps Rugby club are a famous name in the English Professional Rugby game and play in the Gallagher Premiership.
This comes weeks after fellow premiership side Worcester Warriors announced they were going into administration.
Wasps Holdings Limited, which is the holding company for Wasps men’s and women’s rugby teams, and Wasps netball, has ceased trading with immediate effect.
The administrators FRP said that 167 employees have been made redundant, including all members of the playing squads and coaching staff.
Wasps follow Worcester Warriors, with the Gallagher Premiership now operating as an 11-team competition.
Wasps were hit by a winding-up order from HM Revenue and Customs for £2million in unpaid tax, and they also faced having to repay a £35m bond which had helped finance the club’s relocation to Coventry during 2014.
Wasps have been present in the Premiership since the competition began 25 years ago, winning it in 2003, 2004, 2005 and 2008.
They have been crowned European champions twice. This in addition to achieving one European Challenge Cup triumph. Some of England’s most well-known players have also represented the club during rugby union’s professional era.
The 2003 World Cup-winning England squad featured five Wasps players – Lawrence Dallaglio, Josh Lewsey, Stuart Abbott, Simon Shaw and Joe Worsley.
Former Wasps fly-half Andy Goode tweeted: “Exceptionally sad day for @WaspsRugby as they go into administration. A club I loved my time with on and off the field. Thoughts with every player, member of staff and fan at the minute. Hopefully, the club finds new investment and can bounce back asap.”
Worcester Warriors were put into administration on September 26 causing them to be suspended from all competitions as per the league rules.
RFU bosses wanted evidence of a “credible plan to take the club forward,” but said they had received no response.
Worcester’s debts total more than £25million, including at least £6m in unpaid tax.
Administrators have said that Sixways Stadium could see rugby return by “next season”.
Rugby appears to be facing a wave of Club insolvencies similar to that faced by Football clubs in the past few years. Plights of high profile clubs such as Derby County and Glasgow Rangers have been well documented.