The administrators of Wigan Athletic have revealed that negotiations have 'regrettably' broken down with the preferred bidder for the club and that talks are now ongoing with a fresh potential buyer.
The Latics were plunged into administration at the start of the month as the club fights for survival.
Begbies Traynor have been working since then to find a buyer for the club and administrators had been 'hopeful' of a sale earlier this week.
But the firm has confirmed in an update that talks with the preferred bidder broke down late last night.
Begbies Traynor say this is because of the party's 'non-compliance' at the first hurdle.
Talks are now ongoing with the next party that have bid for the club, and discussions are due to continue over the weekend.
A statement read: "The joint administrators of Wigan Athletic Football Club have announced that, regrettably, negotiations with the preferred bidder for the club broke down late last night due to the bidder’s non-compliance in the first stage of exclusivity.
"The joint administrators are now in discussions with the next preferred of the five parties that made a bid to buy the club, with a view to progressing a sale over the course of this weekend.
"Until either the bidder themselves, or the Football League (EFL), elects to announce the identity of the party that is now in exclusive process to acquire the club and its assets, that will remain confidential."
The club suffered a deduction of 12 points at the end of their match against Fulham on Wednesday evening at the DW Stadium as a result of entering administration.
And the draw, coupled with results elsewhere, plunged the Latics into the Championship relegation zone and leaves them with the prospect of playing League One next season.
However, an appeal against this sanction has been lodged and is due to take place on July 31.
The administrators have confirmed that they are continuing to appeal the points deduction, despite the latest development regarding the club's sale.
The statement added: "In addition, following the results of the last match of the Championship season on Wednesday 22 July, the joint administrators can confirm that they will progress with the appeal of the automatic 12-point deduction triggered by the administration of the club.
"The appeal is due to be heard by an independent disciplinary commission on 31 July 2020 and the outcome will be announced by the EFL at some time after that date."
