Championship title-holders Jersey Reds "ceased trading" on Wednesday and say liquidation is "inevitable" unless funding can be found.

Reds split from Jersey RFC in 2022 and went on to win the league and reach the Championship Cup final in May.

The club have cited costs from Covid-19 and reduced RFU funding as causes.

"We had been able to start the season and maintain sufficient funds to cover the summer, but regret that our conversations with potential new investors as well as existing ones have been unsuccessful," Reds chairman Mark Morgan said in a statement.

"At one stage at the end of last season it appeared there was a viable way forward for the second tier once the new Professional Game Agreement was implemented from summer 2024, but Championship clubs have been left in the dark since that point and this led to a growing fatigue among those who may have invested, but could not be given any concrete assurance about when the new structure would come in, or how it would be funded."

Jersey say they will also not be travelling to England to face Cornish Pirates in their Premiership Rugby Cup tie on Friday.

More to follow.