Coventry City have announced that American consortium Manhattan Sports Capital Partners Limited have withdrawn their interest in taking over the club.
The Sky Blues managing director Paul Fletcher resigned on Friday.
He told the Coventry Telegraph at the weekend that he had quit "because of the apparent withdrawal of all five potential buyers".
But the Championship club insist that buy-out talks are still progressing with a number of other parties.
Club director Joe Elliott said the Manhattan group's withdrawal was "bitterly disappointing" - and blamed it on problems with interest rates in the United States, the fluctuating price of the US dollar against the pound, as well as the business interests of the group's potential principle investor Sheldon Yellen.
"Everyone at the club is very sad the deal will not be going ahead after all parties have worked so hard to complete it for the last eight months," he said.
"Unfortunately, it is the case with business that other factors often dictate deals and this is the situation here. Coventry City could not have worked harder for this investment to progress."
Fletcher recently rejected rumours that Coventry - who are reportedly £28m in debt and do not own their ground, but are tenants at the Ricoh Arena - faced administration.