Scunthorpe United have announced the club's owner David Hilton has withdrawn funding from the club moving forwards after deeming his position to be 'untenable'.
David Hilton, who bought Scunthorpe in January, announced he was putting the club up for sale in a statement last week, revealing it was 'available to purchase to the right people'.
In his statement, the Scunthorpe chairman urged that the National League North side had chalked up a 'significant amount of debt' and were also locked in 'ongoing legal battles costing thousands each month'.
Hilton, who has become an unpopular figure at Glanford Park since his takeover, has controversially attempted to ban dissenting fans from the stadium this week.
Scunthorpe issued a statement confirming Hilton is 'actively seeking a way out', with board members Ian Dawson and Tahina Akther resigning from their positions.
Cost-cutting measures will now take place ahead of a potential takeover of the club.
'We can confirm that numerous parties have made contact with the club with a view to taking over, but faced with stadium issues, numerous litigation proceedings and winding up petitions no potential purchasers are looking to move forward,' a club statement read.
'This includes the consortium of local business people and supporters.
'The Chairman and remaining board members have now set out a plan in order to very quickly make the club sustainable.
'An outside company will be bought in to work closely with the club's creditors to try and ensure all are paid in a timely and professional manner.'
The club also confirmed it will vacate their Glanford Park stadium following their upcoming match against Brackley Town on October 7.
Scunthorpe will play their remaining National League NorthRead on m.allfootballapp.com