The future of Coventry RFC is in serious doubt, BBC Coventry & Warwickshire understands.
Owner Andrew Green has effectively shut the club down by putting the company Coventry RFC Limited into creditor voluntary liquidation.
Green says the inability to attract any new money into the club leaves him no option but to end his three-and-a-half-year association.
Friday's Championship match at home to Bedford is now in doubt.
Coventry's neighbours and Championship rivals Birmingham & Solihull revealed only last month that they were suffering similar problems.
And another Championship side, London Welsh, have already been deducted five points this season for going into administration.
For the club to go forward in a sensible manner you're looking at somewhere in the region of £500,000
BBC Coventry & Warwickshire's John Butler
Coventry were saved from going under in 2008 after receiving a reprieve from the Rugby Football Union's demand of raising a £100,000 bond, having raised half the amount.
But it is clear the financial problems have continued to trouble the club. And there have also been problems with HM Revenue & Customs.
Green is understood to have been looking for fresh investment for the club in the city, where Cov play their home matches, at the Butts Park Arena, owned by Coventry City Council.
It is believed that the club's advisory committee are looking to go along the route of administration rather than liquidation.
The RFU has been notified of Tuesday's announcement by Coventry chairman Andrew Green.
And a meeting has already been arranged between former England full-back Peter Rossborough, Coventry's president, and RFU chief executive Francis Baron at Twickenham on Wednesday afternoon to investigate how to keep the club sustainable.
BBC Coventry & Warwickshire's rugby union correspondent John Butler said:
"For the club to go forward in a sensible manner you're looking at somewhere in the region of £500,000.
"By going into administration the club could be reformed.
"But, if they were to be liquidated, then the liquidators would come in and seize the whole lot and the club would effectively cease to exist."