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The company which managed Rygbi Gogledd Cymru, the north Wales regional rugby team, has gone into liquidation.
The team has been absorbed into the WRU National Academy and continues to play.
"Due to a change in the circumstances of the CIC, the Welsh Rugby Union has taken control of the affairs of the North Wales representative team," said a WRU spokesperson.
A series of major initiatives were announced in August 2009 to develop the game in north Wales.
Parc Eirias in Colwyn Bay was chosen as the side's home and a North Wales Rugby Academy and an innovative plan to introduce Canadian players to the development region's representative team were announced.
Former Wales assistant coach Clive Griffiths was appointed head coach and the team was renamed RGC 1404, the year in which Owain Glyndwr became Prince of Wales.
Rygbi Gogledd Cymru was incorporated as a Cooperative Community Interest Company (CIC) in January 2009 with the aim to protect the organisation for the community of north Wales for perpetuity.
But now the company running Rygbi Gogledd Cymru has gone into liquidation with WRU taking over responsibility of the team.
The insolvency company dealing with the liquidation of RGC, Parkin S Booth, say that the rugby team had debts of around £35,000 when they went into liquidation earlier this week.
The creditors are mainly rugby players who have not received their expenses. The company had one member of staff, coach Clive Griffiths, who is now employed by the WRU.
"The team is currently run under the banner of the WRU North Wales Academy and at the present time, therefore, the team should be referred to as WRU North Wales Academy Senior XV," added the WRU spokesperson.
"The joint venture agreement with Rugby Canada is still fully operational and Clive Griffiths remains as head coach, assisted this season by former Wales prop Chris Horsman."
In a statement Rygbi Gogledd Cymru said that the venture had a significant impact on the development of the game in north Wales during its short existence.
"We successfully raised the profile of rugby in a region, which represents half the landmass and a third of the populations of Wales," said the statement.
"Unfortunately, unlike a true catalyst, this activity has consumed RGC-CIC.
"The Board of Directors would like to thank all those that supported us."
The demise of Rygbi Gogledd Cymru is not expected to have an impact on plans and strategy to develop rugby in north Wales.
Work is due to begin on a £6.5m sports and entertainment scheme at Parc Eirias in Colwyn Bay which will be the home of north Wales rugby.
The scheme has received funding form the Welsh Assembly Government and the EU.
http://news.bbc.co.uk/sport1/hi/rugby_union/welsh/9368239.stm