Facing significant financial distress with professional rugby still on hold due to the coronavirus lockdown, the crippled Valke Rugby company will be liquidated, the provincial body has confirmed.
“The directors of the company resolved that the company be wound up as it is unable to pay creditors and employees,” Valke Rugby said in a statement.
“This decision was not taken lightly and the board of directors exhausted all avenues at their disposal to save the company from bankruptcy before concluding that the company be wound up.”
The news followed just days after it was revealed that contracted players had not been paid last month by the East Rand-based union.
Players in the Valke squad, which competed in the Currie Cup First Division, had been told last week that they would have to rely on UIF payments and relief funds with immediate effect.
“We, as part of the Valke family, deeply regret the hardships this decision has caused to all involved. It has, however, become unavoidable,” the organisation said.
“Our hearts go out to all players, employees and families of those affected during this time.”
Though they did not feature in the top-tier Currie Cup Premier Division or Super Rugby competitions, the Valke lifted the Vodacom Cup trophy in 2006.
They reached the semifinals of the Currie Cup First Division competition last season.
While the professional arm had collapsed, the Valke Rugby Union’s
amateur division confirmed it was able to honour its financial commitments to creditors and staff and would not be shut down.