The fledgling professional road racing team made the announcement earlier in the week, citing a lack of sponsorship.
"Not many of us saw it coming," Williamson said yesterday.
"It is not good. I guess nothing is certain in sport with sponsorship. At the moment I have not really made any final decision about where I'll go next year. It is a pretty hard time at the moment."
BikeNZ chief executive Kieran Turner described it as a huge blow for the sport.
"It's heartbreaking for New Zealand cycling that despite a fantastic debut year, and great investment from Sheppard Industries [Avanti], that Pure Black Racing were unable to generate the financial support that they need."
"Pure Black Racing provided much more than just a moving billboard. They developed fantastic leadership and an all-round development experience for their athletes and partners.
"It is a shame that the current New Zealand market does not fully understand the worldwide scale of cycling and how great the reach and return is compared to other sports."
Williamson joined the team at the start of the year and described the season "as better than expected".
"It had been such an awesome year and everything had gone to plan."
Williamson hopes to continue competing on the road but has not got any firm plans yet.
"It is obviously a bit of a setback but it does not mean it is the end of it. It just means that next year isn't going to be quite as big as it might have been. Hopefully, I'll still be able to do a fair bit of racing."
Williamson is still training hard and is preparing for the New Zealand road nationals early next year.
"Hopefully, by then, I will have made a decision on what I'll be doing next year. At the moment it is easy to keep training with races coming up.
"But I guess it could get to a point where there will either be something to keep training for, or I'll have to back off for a while and maybe go back to university and look for something for 2013."
