diff --git a/rhodecode/config/routing.py b/rhodecode/config/routing.py
--- a/rhodecode/config/routing.py
+++ b/rhodecode/config/routing.py
@@ -56,6 +56,18 @@ def make_map(config):
         repos_group_name = match_dict.get('group_name')
         return is_valid_repos_group(repos_group_name, config['base_path'])
 
+    def check_group_skip_path(environ, match_dict):
+        """
+        check for valid repository group for proper 404 handling, but skips
+        verification of existing path
+
+        :param environ:
+        :param match_dict:
+        """
+        repos_group_name = match_dict.get('group_name')
+        return is_valid_repos_group(repos_group_name, config['base_path'],
+                                    skip_path_check=True)
+
     def check_int(environ, match_dict):
         return match_dict.get('id').isdigit()
 
@@ -171,9 +183,10 @@ def make_map(config):
                                                    function=check_group))
         m.connect("delete_repos_group", "/repos_groups/{group_name:.*?}",
                   action="delete", conditions=dict(method=["DELETE"],
-                                                   function=check_group))
+                                                   function=check_group_skip_path))
         m.connect("edit_repos_group", "/repos_groups/{group_name:.*?}/edit",
-                  action="edit", conditions=dict(method=["GET"],))
+                  action="edit", conditions=dict(method=["GET"],
+                                                 function=check_group))
         m.connect("formatted_edit_repos_group",
                   "/repos_groups/{group_name:.*?}.{format}/edit",
                   action="edit", conditions=dict(method=["GET"],
diff --git a/rhodecode/controllers/admin/repos_groups.py b/rhodecode/controllers/admin/repos_groups.py
--- a/rhodecode/controllers/admin/repos_groups.py
+++ b/rhodecode/controllers/admin/repos_groups.py
@@ -251,31 +251,25 @@ class ReposGroupsController(BaseControll
         repos = gr.repositories.all()
         if repos:
             h.flash(_('This group contains %s repositores and cannot be '
-                      'deleted') % len(repos),
-                    category='error')
+                      'deleted') % len(repos), category='warning')
+            return redirect(url('repos_groups'))
+
+        children = gr.children.all()
+        if children:
+            h.flash(_('This group contains %s subgroups and cannot be deleted'
+                      % (len(children))), category='warning')
             return redirect(url('repos_groups'))
 
         try:
             ReposGroupModel().delete(group_name)
             Session().commit()
-            h.flash(_('removed repos group %s') % gr.group_name,
+            h.flash(_('removed repos group %s') % group_name,
                     category='success')
             #TODO: in future action_logger(, '', '', '', self.sa)
-        except IntegrityError, e:
-            if str(e.message).find('groups_group_parent_id_fkey') != -1:
-                log.error(traceback.format_exc())
-                h.flash(_('Cannot delete this group it still contains '
-                          'subgroups'),
-                        category='warning')
-            else:
-                log.error(traceback.format_exc())
-                h.flash(_('error occurred during deletion of repos '
-                          'group %s') % gr.group_name, category='error')
-
         except Exception:
             log.error(traceback.format_exc())
             h.flash(_('error occurred during deletion of repos '
-                      'group %s') % gr.group_name, category='error')
+                      'group %s') % group_name, category='error')
 
         return redirect(url('repos_groups'))
 
diff --git a/rhodecode/lib/utils.py b/rhodecode/lib/utils.py
--- a/rhodecode/lib/utils.py
+++ b/rhodecode/lib/utils.py
@@ -240,7 +240,7 @@ def is_valid_repo(repo_name, base_path, 
         return False
 
 
-def is_valid_repos_group(repos_group_name, base_path):
+def is_valid_repos_group(repos_group_name, base_path, skip_path_check=False):
     """
     Returns True if given path is a repos group False otherwise
 
@@ -263,7 +263,7 @@ def is_valid_repos_group(repos_group_nam
         pass
 
     # check if it's a valid path
-    if os.path.isdir(full_path):
+    if skip_path_check or os.path.isdir(full_path):
         return True
 
     return False
@@ -495,7 +495,6 @@ def repo2db_mapper(initial_repo_list, re
                     #don't hold further removals on error
                     log.error(traceback.format_exc())
                     sa.rollback()
-
     return added, removed