Sportscotland says it has secured posts at the Scottish Gymnastics Association after redundancy notices were issued.
after allegations of serious misconduct by senior management.
And five members of the SGA board have resigned.
"Sportscotland has lost all confidence in the current leadership of SGA, we will pay the eight members of staff directly," said a spokesperson.
"Sportscotland is aware of the deep discontent directed towards SGA's Board and senior management by the majority of member clubs at last week's General Meeting.
"We will only resume discussions with SGA when our confidence in its Board and senior management is restored and they have a clear mandate from gymnastics clubs."