Worcester Warriors have withdrawn their proposal to play in the Championship next season and will rebrand the club as Sixways Rugby, says owners Atlas.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.
More to follow.