Southampton have confirmed that their parent company, Southampton Leisure Holdings, has gone into administration.
Shares in the company, chaired by the Saints chief executive Rupert Lowe, were suspended from trading yesterday and accountants from the recovery and restructuring specialists Begbies Traynor have been appointed administrators.
Meanwhile, Lowe, the club's chairman Michael Wilde and director Andrew Cowen have resigned from the company with immediate effect, although a statement from SLH said the club are "unaffected by these insolvency proceedings".
Southampton have debts close to £28m and are lying second from bottom in the Championship, but they are unlikely to incur a 10-point penalty from the Football League as the club itself is not in administration.
The controversial Lowe was chairman at the club for 10 years until his removal in 2006 but he linked up with Wilde, the man who initially replaced him, to return to the boardroom last summer. However, despite introducing a number of cost-cutting measures, including loaning out big-earners and closing parts of St Mary's stadium on match days, the south-coast club remain in dire financial straits.
Lowe stated yesterday that placing the company in the hands of administrators was the only way to ensure the club's survival, and hopes the move will help attract much-needed investment.
In a statement, the joint-administrator Mark Fry said: "Southampton Football Club has a long history in English football and could be an extremely attractive investment for the right buyer. We are working hard to preserve the value of the football club and produce a positive outcome for all stakeholders, and I ask that fans continue to show their support for the team for the remainder of the season as we seek to show the best face possible to potential investors."
Southampton are currently three points from safety and face bottom-of-the-table Charlton at St Mary's on Saturday.
