The fans' group bidding to take over Dunfermline has terminated discussions with the club, raising fears over the Pars' survival.
Her Majesty's Revenue and Customs have petitioned for a winding-up order in the Court of Session, with Dunfermline needing to pay a tax bill of around £130,000, but it had been hoped that a takeover could rescue the club.
The Pars Community (TPC) fans' group had been looking to achieve that aim but has now withdrawn the bid as the offer was rejected by owner Gavin Masterton.
A statement from the fans' group read: "The Pars Community has been unable to receive confirmation today from Mr Gavin Masterton's representative that its final, non-negotiable proposal, made yesterday, was acceptable to Mr Masterton.
"Accordingly, discussions between TPC and Mr Masterton's representative have unfortunately now terminated. TPC has worked tirelessly over many months now and is extremely upset at the outcome of its endeavours."
However, Dunfermline say TPC was unable to provide the initial £250,000 funding needed for the deal.
The club said: "It was expected that heads of terms on that proposal would be signed today and that the TPC would commence due diligence today, which would have led to the financial transparency they had been so urgently seeking and to verify if the proposed offer was a viable solution.
However, despite repeated requests to demonstrate that the £250,000 of capital was available by the named supporters to deal with the HMRC issue, the TPC were unable or unwilling to demonstrate such availability.
"This led the club to request the TPC to deposit such funds in an escrow account to be released to the club following completion of due diligence. At that point the TPC withdrew its offer and subsequently submitted a further proposal, but on significantly more onerous terms than their original one.
"DAFC and its representatives sought a meeting with TPC this afternoon to seek assurances, but the TPC declined this request and have now withdrawn their proposal.
"The Board of DAFC continues to explore all avenues to secure the future of our club as quickly as possible, we will update supporters of progress as soon as possible whilst respecting the financially sensitive nature of the negotiations."
Information from the Press Association was used in this report