Director Bob Holt said:
"The players and staff have been paid although the club have been enjoying the benefits of some very tolerant creditors over the past few months and we thank them for that and like them, we were hoping that this deal would come to fruition.
The Directors are doing their utmost to secure funds for the future and we won't give up. It is difficult to make any forecast, other than the Directors will be doing their utmost to make sure that the club continues trading and playing in League One.
The deal has fallen through because the shareholders, who are selling, and the purchasers haven't come to an agreement. We have reached the point now where there are insufficient funds to continue trading. We are now seeking additional funds from the current shareholders.
The Board will endeavour to get the major shareholders and Andrew Fitton around a table as soon as possible to continue negotiations. The players and staff have been briefed and have been appraised of the situation.
The shareholders have been looking at an alternative solution as a backstop and I will be seeking, along with the Directors of the club, answers to a number of questions over the next 24 hours."