South Africa Rugby has taken back 74% in the Southern Kings due to financial issues.
Mark Alexander, President of SA Rugby, said the decision was taken following the failure of the Greatest Rugby Company in the Whole Wide World (GRC) to meet its financial commitments relating to the acquisition of the shareholding.
Rassie Erasmus, South Africa's director of rugby, is liaising with Kings director of rugby and interim coach, Robbie Kempson, on immediate team needs.
Players and staff have been assured of their immediate future.
"I cannot stress enough how reluctant we are to resume control of the Isuzu Southern Kings," said Alexander
"It is our last resort and we are keen to explore ways to return to the shareholding to another’s hands, in conjunction with the EPRU, the minority shareholder, who have given the required approval to the decision.
"The next step is to appoint a new board to oversee the franchise’s affairs and ensure the team is match ready for when we are able to resume playing."
SA Rugby has appointed a finance team to work with franchise administrators on ensuring salary payments are made and business needs are addressed.
The decision ensures the Southern Kings will participate in Pro14 and other compeititons.
"This was a decision we took with extreme reluctance and after allowing GRC considerable lee-way in which to meet the contractual commitments they made on the acquisition of the shareholding," said Alexander.
"We appreciated the vision and intentions of the GRC but unfortunately we are operating in an unforgiving business environment."
A decision on whether an administrator is needed will be taken in the coming days.