The Division One outfit romped to promotion from Division Two last season as runners-up to champions Filey Town Reserves, but lost several of their players in the build-up to the new campaign.
Steve Mothersdale's side have had a torrid season to date and despite their best efforts to bring new players in to boost their numbers, the manager resigned and the club folded as a result.
Mothersdale said: "I'm absolutely gutted but I couldn't do it anymore. I'd had enough and wasn't enjoying it so I resigned on Sunday and the club couldn't carry on anymore.
"I had taken it as far as I could and it was impossible to do what I wanted with it in a town that's limited and committed to challenge the top of Division One.
"I want to thank Pete and Emma at Whitby Rugby Club, Mark Jones and his wife for the help and the race night, Mitch, Gary and Harry at Harry's Bar for the sponsorship and all my mates from around the Scarborough League and elsewhere for the support."