diff --git a/control-plane/pkg/apis/internals/kafka/eventing/v1alpha1/consumer_group_lifecycle.go b/control-plane/pkg/apis/internals/kafka/eventing/v1alpha1/consumer_group_lifecycle.go
index c5e598b45b..aa8d475160 100644
--- a/control-plane/pkg/apis/internals/kafka/eventing/v1alpha1/consumer_group_lifecycle.go
+++ b/control-plane/pkg/apis/internals/kafka/eventing/v1alpha1/consumer_group_lifecycle.go
@@ -83,6 +83,12 @@ func (cg *ConsumerGroup) MarkInitializeOffsetFailed(reason string, err error) er
 	return err
 }
 
+func (cg *ConsumerGroup) MarkDeleteOffsetFailed(reason string, err error) error {
+	err = fmt.Errorf("failed to delete consumer group offset: %w", err)
+	cg.GetConditionSet().Manage(cg.GetStatus()).MarkFalse(ConditionConsumerGroupConsumers, reason, err.Error())
+	return err
+}
+
 func (cg *ConsumerGroup) MarkScheduleSucceeded() {
 	cg.GetConditionSet().Manage(cg.GetStatus()).MarkTrue(ConditionConsumerGroupConsumersScheduled)
 }
diff --git a/control-plane/pkg/reconciler/consumergroup/consumergroup.go b/control-plane/pkg/reconciler/consumergroup/consumergroup.go
index f7cef59a57..72295d97f7 100644
--- a/control-plane/pkg/reconciler/consumergroup/consumergroup.go
+++ b/control-plane/pkg/reconciler/consumergroup/consumergroup.go
@@ -156,10 +156,8 @@ func (r Reconciler) FinalizeKind(ctx context.Context, cg *kafkainternals.Consume
 	err := r.schedule(ctx, cg) //de-schedule placements
 
 	if err != nil {
-		cg.Status.Placements = nil
-
 		// return an error to 1. update the status. 2. not clear the finalizer
-		return errors.New("placement list was not empty")
+		return cg.MarkScheduleConsumerFailed("Deschedule", fmt.Errorf("failed to unschedule consumer group: %w", err))
 	}
 
 	// Get consumers associated with the ConsumerGroup.
@@ -177,7 +175,7 @@ func (r Reconciler) FinalizeKind(ctx context.Context, cg *kafkainternals.Consume
 	if err := r.deleteConsumerGroupMetadata(ctx, cg); err != nil {
 		// We retry a few times to delete Consumer group metadata from Kafka before giving up.
 		if v := r.DeleteConsumerGroupMetadataCounter.Inc(string(cg.GetUID())); v <= 5 {
-			return err
+			return cg.MarkDeleteOffsetFailed("DeleteConsumerGroupOffset", fmt.Errorf("%w (retry num %d)", err, v))
 		}
 		r.DeleteConsumerGroupMetadataCounter.Del(string(cg.GetUID()))
 	}
diff --git a/control-plane/pkg/reconciler/consumergroup/consumergroup_test.go b/control-plane/pkg/reconciler/consumergroup/consumergroup_test.go
index b49c9b120f..b2ac6250cd 100644
--- a/control-plane/pkg/reconciler/consumergroup/consumergroup_test.go
+++ b/control-plane/pkg/reconciler/consumergroup/consumergroup_test.go
@@ -2164,9 +2164,28 @@ func TestFinalizeKind(t *testing.T) {
 				Eventf(
 					corev1.EventTypeWarning,
 					"InternalError",
-					"unable to delete the consumer group my.group.id: "+sarama.ErrClusterAuthorizationFailed.Error(),
+					"failed to delete consumer group offset: unable to delete the consumer group my.group.id: "+sarama.ErrClusterAuthorizationFailed.Error() + " (retry num 1)",
 				),
 			},
+			WantStatusUpdates: []clientgotesting.UpdateActionImpl{
+				{
+					Object: func() runtime.Object {
+						cg := NewDeletedConsumeGroup(
+							ConsumerGroupOwnerRef(SourceAsOwnerReference()),
+							ConsumerGroupConsumerSpec(NewConsumerSpec(
+								ConsumerConfigs(
+									ConsumerBootstrapServersConfig(ChannelBootstrapServers),
+									ConsumerGroupIdConfig("my.group.id"),
+								),
+							)),
+						)
+
+						_ = cg.MarkDeleteOffsetFailed("DeleteConsumerGroupOffset", fmt.Errorf("unable to delete the consumer group my.group.id: kafka server: The client is not authorized to send this request type (retry num 1)"))
+
+						return cg
+					}(),
+				},
+			},
 			SkipNamespaceValidation: true, // WantCreates compare the source namespace with configmap namespace, so skip it
 		},
 	}
diff --git a/control-plane/pkg/reconciler/testing/objects_consumergroup.go b/control-plane/pkg/reconciler/testing/objects_consumergroup.go
index e354b2de59..3942bd7915 100644
--- a/control-plane/pkg/reconciler/testing/objects_consumergroup.go
+++ b/control-plane/pkg/reconciler/testing/objects_consumergroup.go
@@ -23,7 +23,6 @@ import (
 
 	corev1 "k8s.io/api/core/v1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/utils/pointer"
 	"knative.dev/pkg/apis"
 	duckv1 "knative.dev/pkg/apis/duck/v1"
@@ -219,7 +218,7 @@ func ConsumerGroupOwnerRef(reference metav1.OwnerReference) ConsumerGroupOption
 	}
 }
 
-func NewDeletedConsumeGroup(opts ...ConsumerGroupOption) runtime.Object {
+func NewDeletedConsumeGroup(opts ...ConsumerGroupOption) *kafkainternals.ConsumerGroup {
 	return NewConsumerGroup(
 		append(
 			opts,
@@ -229,7 +228,7 @@ func NewDeletedConsumeGroup(opts ...ConsumerGroupOption) runtime.Object {
 }
 
 func WithDeletedTimeStampConsumeGroup(cg *kafkainternals.ConsumerGroup) {
-	cg.GetObjectMeta().SetDeletionTimestamp(&metav1.Time{Time: time.Now()})
+	cg.GetObjectMeta().SetDeletionTimestamp(&metav1.Time{Time: time.Date(2023, time.October, 23, 1, 0, 0, 0, &time.Location{})})
 }
 
 func WithConfigmapOwnerRef(ownerref *metav1.OwnerReference) reconcilertesting.ConfigMapOption {