Worcester Warriors have withdrawn their proposal to play in the Championship next season and will rebrand the club as Sixways Rugby, says owners Atlas.
Warriors had been given until 14 February to meet Rugby Football Union criteria to play in the second tier.
But Jim O’Toole, who led the Atlas takeover alongside James Sandford, said they have pulled out of talks.
“There were a number of key clauses in the contract that we couldn’t sign,” said O’Toole.
He told BBC Hereford & Worcester: “This decision will clearly upset and annoy a number of people.
“The sad fact of life is that the Worcester Warriors brand and the Worcester Warriors business is gone.
“The name sadly will disappear. We are rebranding as Sixways Rugby.”
The new club will instead partner with fourth-tier side Stourbridge, who ex-Warriors chief executive O’Toole says will play at Sixways for the rest of the season.
More to follow.