A proposed takeover of League Two side Rochdale AFC has collapsed after an investigation was launched by the English Football League (EFL).
London-based Morton House MGT had been behind the bid for the club who were relegated from League One at the end of last season.
Last week the league stepped in and issued notice to multiple individuals of the commencement of disciplinary investigations in respect to the acquisition of shares in Rochdale.
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An EFL statement released over the weekend said: "It is alleged that Morton House MGT acquired control of the club, and a number of individuals became relevant persons without the prior consent of the EFL in accordance with the owners’ and directors’ test (OADT).
"The EFL’s objective was to gather additional evidence as it continued to investigate whether the club, any official, any relevant person(s) and/or any persons wishing to acquire control of the club complied with the requirements of the OADT and whether any relevant person(s) are subject to a disqualifying condition.
"Having considered the request for information made of them, Morton House MGT, on behalf of its directors, and representatives, has now informed the League that it is formally withdrawing from the approval process and plans to divest the shares acquired in the club at the earliest opportunity.
"Furthermore, Morton House MGT, its directors, and representatives, have confirmed to the league they are refusing to co-operate with the league’s ongoing investigations.
"Despite these developments, the EFL will be continuing with its disciplinary investigations into this matter and will take the most appropriate action available to it under its regulations.
"More importantly, the EFL will continue to work with Rochdale AFC as we collectively seek to ensure a successful and sustainable long-term future for the club and all those associated with it, particularly its players, staff, and supporters."
The statement from the EFL comes after board members of Rochdale AFC held an initial meeting with prospective new majority shareholders of the club at the start of July.
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The club's chief executive left his position by mutual consent at the end of June while a new chairman was appointed earlier that month.
Rochdale were put up for sale after the board said they needed to find outside investment following a pair of New York-based investment managers pulling out of talks to financially boost the club over "serious internal issues".
