Swindon Town are facing Receivership according to director Bob Holt.
The Willis family have been major shareholders at the club for many years, but are refusing to plough more money into the unviable club. A Portugese company agreed a takeover some months ago, but disappeared when monies were expected.
Local businessman Andrew Fitton has since come forward with a bid, but withdrew on Thursday citing "unacceptable conditions" to the sale. The club are £5million in debt, with Holt telling the Swindon Advertiser:
"We have reached the point now where there is insufficient funds to keep trading. We will be seeking additional funds. We have to talk to our creditors and if they lose patience, they lose patience and one could not blame them. Any creditor is at liberty to take legal action whenever they feel like it."
Fitton's deal is said to have failed on the Willis family, for whom son James is still a Director, insisting that the ground remains in their posession. A third bidder is believed to now be in the running but the losses at the club, combined with the global 'credit crunch', is believed to be ruling out anything but a cash buyer.
The club are understood to be so insolvent that Administration is not an option, and the club could enter insolvency proceedings within days if a deal cannot be reached.