Derby County have applied to enter administration, the club saying that they "had no choice but to make the tough decision" to file notice to appoint administrators.
The Rams said the move was due to "a number of developments", including a failure to identify new owners and the continuing impact of Covid-19 on revenue streams.
The statement read: "Last week, it became clear that the process which has been underway to identify a purchaser for the club likely would not be productive over the near term, despite the number of negotiations with credible parties.
"Because the Covid-19 pandemic has had a severe impact on the revenues and profits of all of its businesses, the club has been unable to service its day-to-day financial obligations. The directors had no choice but to make the tough decision to take this action and protect the Club."
Derby are set to face a mandatory points deduction as a result of the move. The club are already facing separate points penalties for prior breaches of Financial Fair Play rules.
The 12-point penalty for going into administration is mandatory, and will be applied once the club has officially entered administration.
However, the club could conceivably appeal citing extenuating circumstances, given their insistence that their plight has been a direct result of the unprecedented Covid climate.
The statement continued: "The irony is that the club’s financial forecasts show the emergence of a financially sustainable picture. Absent the Covid-19 pandemic, we undoubtedly would have been able to trade through.
"However, the impact of Covid-19 pandemic and the unpredictability it has created represents too much of a strain.
"As the Covid-19 pandemic and lock down tightened their grip, the club’s revenues and cash flow took a circa £20 million hit."