London Irish's future has been plunged into doubt after German businessman Daniel Loitz withdrew his takeover proposal to rescue the stricken club.
Telegraph Sport revealed in November that Loitz had provided proof of funds to the administrators, ReSolve, and emerged as the preferred bidder despite late interest from a rival consortium backed partly by Eddie Jordan, the Irish businessman and former Formula One team owner.
Loitz at the time submitted an application to the Rugby Football Union for Irish to join an expanded 14-team Championship this year, offering a total financial package in excess of £20 million to purchase the club's IP, brand and eventually the Hazelwood training base in Sunbury.
Telegraph Sport can now reveal that Loitz will no longer be purchasing the club, after "the parameters of the deal were subject to frequent and unexplained changes" according to a statement from Loitz's investment company, Hokulani Limited.
"This decision has not been taken lightly, given our unwavering commitment to preserving the legacy of London Irish and its vital role in the rugby community since we first engaged in this process in June 2023," read the statement.
Hokulani Limited noted the "highly perplexing" development of two additional bidders - a Northern Ireland-based group (the consortium with Jordan) and an American consortium - in late 2024 when negotiations between Hokulani and the administrators were at an advanced stage, with the administrators adopting a "whoever signs first gets it" approach which, as the preferred bidder, Hokulani Limited found "both surprising and frustrating".
"The exclusivity phase of the negotiations proved equally challenging," the statement continues. "The parameters of the deal were subject to frequent and unexplained changes, creating an environment of uncertainty and instability. These inconsistencies made it increasingly difficult for Hokulani Limited to proceed with confidence, despite our steadfast commitment to the acquisition.
"It is disheartening to consider the potential consequences of this process for the rugby community, particularly at Hazelwood. Should the administrators and other stakeholders choose a path that jeopardises the future of rugby at this historic site, that decision will rest with them.
"Hokulani Limited's vision has always been clear: to preserve and enhance the legacy of London Irish, ensuring that Hazelwood remains a thriving hub for the sport and its supporters. Our financial package was designed to deliver on this vision, backed by the necessary resources and a deep respect for the club's heritage."
London Irish went into administration with over £30 million of unpaid bills in June 2023, after a proposed sale to an American consortium collapsed.
The club were previously tenants of Brentford Football Club at the Gtech Community Stadium before their financial collapse, finishing their final season in the Gallagher Premiership in fifth place.
ReSolve has been contacted for comment.