Worcester Warriors' players and staff are set to have their contracts terminated after part of the Premiership club was wound up in court.
Worcester are currently suspended from all competitions over a £6m unpaid tax bill with staff not receiving their full wages for August and September.
It has now been instructed that WRFC Players Ltd is liquidated, through which players and staff are paid.
It means the contracts of all players, backroom and administrative staff and the women's squad are all terminated and they can now leave the club.
Worcester's suspension from the Premiership could now be extended until the end of the season with the Warriors then facing relegation to the Championship.
Worcester owners Colin Goldring and Jason Whittingham have been slammed for their handling of the club and appeared to blame the squad and supporters for the demise in a statement last week. That came after captain Ted Hill, who has since joined Bath on loan, demanded an apology and answers from club bosses..
"We are thankful to those supporters who turned up week in, week out to support the club but sorry that there were not more, nor enough of you on a regular basis to help make the club financially viable, despite the significant personal funds we put into the club," a statement read.
"We are thankful to all of the staff that supported the club through Covid in accepting a significant reduction in their salary, but sorry that the playing squad could not accept a similar level of reduction.
"And in some players' instances would not accept any pay cut at all despite our openness at the financial impact this would have on the club."
A group of Worcester players came together to train at Sixways Stadium on Wednesday, after a winding-up petition was suspended against the company the ground comes under.
Fly-half Jamie Shillcock posted an image on Twitter alongside 17 of his teammates with the caption 'The Last Dance'.
He added: "Even with everything happening today, some boys still wanted to come in and keep going. It doesn’t seem fair but we’ve done everything we can."
