The culture secretary, Lisa Nandy, has called for the immediate sale of Morecambe football club to avoid the “heartbreaking” closure of the 105-year-old institution within days.
Shareholders at the National League club said it would “officially shut” and face “total collapse” on Monday unless the owner, Jason Whittingham, agreed to sell up.
In a statement, the prospective buyers, Panjab Warriors, and minority shareholders said the club had “£0 in the bank and no cash on site [meaning] operations cannot continue”.
The collapse of the club, known as the Shrimps, has added urgency to plans for a new football regulator after similar crises at historic clubs including Bury FC, Macclesfield, Sheffield Wednesday and Bolton Wanderers.
In an open letter to Whittingham on Friday, Nandy said: “I am writing to you to express my deep concern at the serious and worsening situation at Morecambe football club.
“The uncertainty and misery now facing this proud club, its fans, players, staff and the local community is heartbreaking to see.”
The club’s future has hung in the balance since Whittingham, an Essex businessman, appeared to renege on a deal with Panjab Warriors, a London-based investment firm, and was planning to sell instead to a mystery third party.
Weeks of delay led to the club being suspended until at least 20 August by the National League, the fifth tier of English football, meaning it cannot play its opening three fixtures, which are due to kick off next Saturday.
Nandy urged Whittingham to end the “agony” of fans as quickly as possible. “It is the government’s firm view that owners need to act as the custodians of their clubs,” she wrote.
“It is never too late to do the right thing and with so much at stake for this grand old town, the time for action is now. I call on you to effect a sale to a suitable owner, and give the club a chance of a brighter future.”
Lizzi Collinge, the Labour MP for Morecambe and Lunesdale, said she was “devastated that this crisis is still dragging on, with the damage being done worsening every day”.
Collinge called on Whittingham to “just sign the damn paperwork” and said the crisis would have been “entirely avoidable” if he had sold the club when the English Football League approved the deal in early June.
She said she was frustrated that the new football regulator, which will start work later this year, would not be able to save Morecambe, but said it would stop other clubs “suffering in the future by preventing rogue ownership”.
Pat Stoyles, the interim chair of the Morecambe supporters’ group, the Shrimps Trust, said it was “absolutely devastating” to face losing the club.
All junior-level operations at the club ended on Friday due to a lack of insurance, bringing an end to “every kid’s dream of playing for their local club”, said Stoyles.
He said: “I dont think people thought it would affect every level of football through the club. We are going to effectively lose everything.”
He said there was “anger and frustration” at Whittingham, but added: “As time goes on that anger starts to spread into the governing bodies for allowing it to get to this situation and not learning from experiences like Bury and Macclesfield.”
The Guardian has contacted the club and Whittingham for comment.
