FORMER Oxford-based rugby club London Welsh have gone into liquidation.

The Exiles, who spent three seasons playing at the Kassam Stadium between 2012-15, say their business model is "totally unsustainable".

The announcement follows reports the Greene King IPA Championship side were set to go out of business next week.

Chairman Gareth Hawkins said: “London Welsh has reached a difficult point in its illustrious history.

"Due to a playing budget of £1.7million and gates at games numbering as low 400, the club’s current business model is totally unsustainable.

“The debts accrued from trading in this way have left the club with no alternative but to seek liquidation.

"Having to break that news to 40 staff members was extremely difficult.

“All creditors of London Welsh Rugby Club will be contacted by the liquidator."

London Welsh moved to the Kassam Stadium in 2012 having won promotion to the Aviva Premiership.

Despite holding their own they were relegated to the Championship, but they bounced straight back up to English rugby's top tier 12 months later.

However, the 2014-15 campaign proved disastrous as they failed to win a match and subsequently moved back to Old Deer Park.

They have since remained at their Richmond base and will now seek to be a semi-professional outfit.

Hawkins added: “In the new year, it is the hope and intention of the board that London Welsh will be able to return to playing at Old Deer Park.

"However, it will first be necessary to change the club’s business model to a semi-professional set-up and form a new company, and then raise £300,000 so that the Club can regain a position within the RFU Greene King IPA Championship.

“Richmond have proved that a club can compete in the Championship with a semi-pro model, and I firmly believe we can make this work in 2017.”