Portsmouth's parent company Converse Sports Initiative have gone into administration, prompting the resignation of club chairman Vladimir Antonov.
The Championship side have released a statement confirming that CSI have begun insolvency proceedings following the arrest of Antonov and business partner Raimondas Baranauskas over fraud and money laundering in relation to Snoras Bank.
"After the extraordinary amount of work put in by so many people over the last 18 months to get to this point, it is incredibly disappointing for the club to find itself in this position," the club's chief executive David Lampitt told the official website.
"I want to assure staff and fans that we will continue to do everything possible to safeguard the position of the club and its longer term future."
The club have stressed that Portsmouth Football Club have not entered administration and will continue as normal.
A search for "longer-term" investment is now underway at Fratton Park.
Danielle Joynson
