The Championship club, based in Jersey, has confirmed that it no longer has the financial means to continue trading and is unable to pay staff salaries this month.

A key investor pulled out on Wednesday and it is understood that limited funding from the Jersey government was also withdrawn. The financial difficulties were exacerbated by delays in the Rugby Football Union (RFU) confirming funding arrangements under a new agreement with Championship clubs.

The club was due to play a championship game at Cornish Pirates this Friday but now all fixtures have been cancelled. Last season Jersey Reds won the Championship, the second tier of club rugby.