The South Australian branch of the RSL has been placed into voluntary administration after struggling with rising costs and declining revenue.
The veterans organisation says it decided to take the step at a board meeting last week, following a review of the SA branch's troubled finances.
The decision was then unanimously supported by the branch's president Tim Hanna and board at their own meeting on Wednesday.
RSL National President Robert Dick says legal firm Rodgers Reidy has been appointed to lead a "complete restructure" of the branch.
"To ensure we can continue to support our members, veterans in the community and the SA sub-branches and maintain our support in line with our objectives," he said in a statement.
Mr Dick said the administration process would not impact on any services the RSL offers in SA, including plans for Anzac Day in less than two weeks time.
He said the national RSL and the SA branch have been working with the Australian Charities and Not for Profit Commission over an "extended period" to identify and resolves issues with the branch, and that work will continue.
Federal Defence Industry Minister Christopher Pyne said he thought the development was "a great pity", and that the state government might decide to step in and assist the SA branch.
Premier Jay Weatherill said the state government had been in regular contact with the RSL, but the organisation had not asked for financial support.
"I think they first need to grapple with a restructure of the organisation. It seems it's not on a sustainable footing at the moment," he told reporters in Adelaide.
"Principally, it's a matter for them. But obviously we're providing support where we can."
The RSL said staff at its SA branch would remain with the organisation at least until a creditors meeting next week.
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