Only two weeks after members were told that the financial future of the Scottish Rugby Union (SRU) was secure, the organisation could be hit by the loss of a sponsorship deal believed to be worth around £3million over four years. The European branch of Canterbury, the kit supplier, went into administration yesterday and immediately announced that all contracts had been ended.

Last night, Murrayfield officials were scrambling to find out how badly they would be affected - the move came so much out of the blue that they had planned to launch the new Scotland international strip today and were forced hurriedly to cancel the event. Though the Scotland deal is one of Canterbury's biggest, the union had not been contacted by the company or its administrators.

“Scottish Rugby is concerned to hear reports regarding Canterbury Europe,” Dominic McKay, the union's director of communications, said. “We will be making immediate contact with KPMG, the administrator, to clarify the position. It would be inappropriate to make further comment on this matter.”

If contracts are to be axed without notice, the effects would be felt across European rugby since Canterbury is also the kit supplier to Leinster, Cardiff and London Wasps as well as numerous clubs in France. In Scotland, Canterbury has a contract to supply kit to Glasgow, potentially leaving them with less than six weeks to find a replacement before the club starts warm-up matches for the new season.

However, McKay was at pains to point out that while the loss of such a significant contract would be a blow, the union's management had made sure that they had a “broad portfolio” of agreements, including sponsorships, partnerships and rights deals, so that they would not be overexposed should one contract get into trouble.

However, with most of the players already back in pre-season training, they could have done without an extra air of uncertainty. There are already issues concerning the Setanta television deal to broadcast Edinburgh and Glasgow's Magners League matches.

The television contract is with the Irish branch of the company, which is still trading profitably, but as things stand is not able to broadcast in the United Kingdom. The union makes only a small six-figure income from the agreement but also needs to make sure Scottish professional rugby remains on television in the face of apparent apathy from the domestic television broadcasters, BBC Scotland and STV.

The kit sponsorship poses both financial and practical problems. Apart for the need to get kit for all the national sides as well as Glasgow, they have recently joined forces with Greaves Sports, the Glasgow-run business, in a project believed to have cost £750,000 between them, to redevelop and expand the Murrayfield shop. Most of the merchandise on sale there is Canterbury-branded and both parties will be anxious to ensure there is no interruption in its supply.