Gateshead have announced that the proposed sale of the club to an overseas consortium has fallen through.
Additionally, the Tynesiders will be operating as a part-time club next season. In a statement released by the Vanarama National League side, the following details were outlined, as the proposed deal with a Shanghai-based investor falls through:
A routine National League “change of ownership” meeting which took place in Manchester last week resulted in the collapse of a potential sale of Gateshead Football Club when the would-be buyers failed to satisfy various aspects of the competition’s requirements.
Despite being given the opportunity to rectify the shortcomings, the potential buyer decided against pursuing matters further.
Current joint owner and Club Chairman Richard Bennett commented: “I met with the potential buyers following the meeting with the National League and it quickly became clear that they had been withholding important information from us during the due diligence process.
“It’s very disappointing for everyone involved especially given the work that has gone into this.
“First and foremost in our minds is the long-term future of the club and Julie and I have decided to continue our ownership until such time as a credible buyer can be found. Someone who, in our opinion, is right for the club.
“However, we simply cannot afford to continue running the club on a full-time basis in the meantime and regrettably cuts in all areas of expenditure are a necessity.
“Naturally, we’ll look to remain competitive at the highest level of non-league football but we’ll need to become one of a growing number of part-time clubs in the national division.
“We fully realise that this isn’t the outcome anyone was looking for but we strongly believe it’s important that the town of Gateshead maintains its football club.
“We hope that everyone understands the situation and gets behind the club wherever and however possible to ensure this set-back is merely temporary.”