Third Division Darlington have been placed in administration.
Reynolds is determined Darlington will survive
They are in the Division Three relegation zone despite moving into a new 27,000 capacity stadium.
And chairman George Reynolds blamed the Quakers' cash problems on difficulties
putting the new stadium to non-football uses.
Reynolds claimed he took the action in a bid to prevent the club being wound up by the Inland Revenue.
He said: "It's very sad news. We've tried very hard, built
the stadium and worked untold hours.
"If you look at other stadiums, they are allowed to do car boot sales, markets, and computer and antique fairs - but we're not. We're not allowed to make any money.
"I warned Darlington Borough Council four months ago - they've not been bad. I'm not going to criticise them because they've got a job to do - but it's a long process. It's taken a long time."
However, Reynolds believes the club can survive, with the co-operation of everyone in the town.
He continued: "We're sitting ducks but the club will turn around if everyone gets behind it. We can survive.
"My message to the fans is this. If the fans and the business people in the
town get behind us we will dance through this.
"I paid off a £5.2m debt when I came in in seven days - I've put my heart and soul into this club. But I've never had a year like this in my life - it's been an awful year for me."
Reynolds added: "I have invited the appointment of joint administrators to protect the club from being wound up by the Inland Revenue who have issued a winding-up petition.
"You should be aware Feethams was condemned and it was essential to relocate the club.
"The new stadium is almost complete and negotiations are on-going with the council and it will be for the administrators to resolve this as a matter of urgency.
"I will provide every assistance to ensure the future well-being of the club.
"Whilst the administrators resolve the footballing issues I will endeavour to develop other commercial interests for the benefit of the club."
Despite the club's financial problems, Reynolds says he does not regret getting involved with the Quakers.
He added: "I didn't support Darlington but I couldn't bear the thought of 120-odd years of history going out the window - that's why I became involved."