The club then dropped back into the Lancashire Combination where on 7 August 1936 they folded again after incurring a big loss.[2][3][4][11] Hastily reformed as Nelson Town, the "new" club entered the local Nelson & Colne League in time for the 1936–7 season and duly lost their first fixture at Seedhill against James Nelson SC 3–2. After completing two seasons in local football the club announced after their final game at Gargrave in 1939 that the following season would see them return to senior football in the West Lancashire League. Sadly only two games were played before events in Europe dictated a seven-year absence of League football in Nelson.