Worcester Warriors will be relegated to the Championship ahead of next season.
The Rugby Football Union (RFU) has concluded that the ‘no fault insolvency’ applications against relegation from both Worcester Warriors and Wasps have been rejected.
The administrators for the two clubs had submitted the applications in the hope of overturning their automatic relegation from the Premiership, claiming the Coronavirus pandemic as being a principal cause of their demise.
However, the RFU has deemed that Warriors and Wasps, who both went into administration in October, were at fault for their financial collapse.
The RFU’s decision will mean that both clubs will compete in the Championship from 2023/24, should they be able to reform following administration.
At the end of last month Begbies Traynor, the administrators for Worcester, extended the period of exclusivity on the sale of the club for a further two weeks.
This extension has given the consortium led by Jim O’Toole and James Sandford more time to conclude the purchase of the club.
The news that the RFU have rejected the ‘no fault insolvency’ applications will come as little surprise to the pair, who have always said they would be prepared to rebuild the club in the second tier.
As they enter the final week of their exclusivity period, O’Toole and Sandford remain confident of sealing a deal.
However, the possibility of a further extension should not be ruled out.
A statement from the administrators on November 29 read: "Following a period during which the preferred bidder has been working at speed to complete the transaction to acquire the business and assets of Worcester Warriors; we are extending the period of exclusivity for a period of a further two weeks as originally anticipated.
"This remains a complex transaction with the focus of all relevant parties and stakeholders on ensuring a long-term viable future for the club.
"We still await the outcome on our appeal against relegation on the basis of no fault insolvency and also confirmation on the position of the P share from both the RFU and PRL
"While the sale is not conditional on these outcomes, early clarity would assist us with the tight deadlines we are working to in order to rescue the club and ensure a playing squad can be rebuilt in good time for next season."
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