diff --git a/src/engine/objects/City.java b/src/engine/objects/City.java
index bc840549..402cc9c8 100644
--- a/src/engine/objects/City.java
+++ b/src/engine/objects/City.java
@@ -1173,7 +1173,8 @@ public class City extends AbstractWorldObject {
             sourceNation.getSubGuildList().remove(sourceGuild);
 
             if (sourceNation.getSubGuildList().isEmpty())
-                sourceNation.downgradeGuildState();
+                sourceNation.guildState = GuildState.Sovereign;
+
         }
 
         // Link the mew guild with the tree
diff --git a/src/engine/objects/Guild.java b/src/engine/objects/Guild.java
index 836c59a5..144514c1 100644
--- a/src/engine/objects/Guild.java
+++ b/src/engine/objects/Guild.java
@@ -908,15 +908,13 @@ public class Guild extends AbstractWorldObject {
         // Guild without any subs is no longer a nation
 
         if (subGuild.getOwnedCity() == null) {
-            subGuild.nation = null;
+            subGuild.guildState = GuildState.Errant;
+            subGuild.nation = Guild.getErrantNation();
         } else {
             subGuild.nation = subGuild;
+            subGuild.guildState = GuildState.Errant;
         }
 
-        // Downgrade guild
-
-        subGuild.downgradeGuildState();
-
         // Remove from collection
 
         subGuildList.remove(subGuild);