KEN DAVY will be staying in charge of Huddersfield Town after a complete breakdown in talks with former Hull City chairman Adam Pearson.
Although Pearson still has another 48 hours to buy a minority shareholding in the League One club for a price of 3.2m, he has made it clear that he is only interested in acquiring a majority stake at the Galpharm Stadium.
Negotiations have ceased and, with Davy apparently intent on remaining at the helm, the club's supporters fear a crisis is on the horizon.
With six defeats in the last nine games, Town are rapidly sliding into a relegation battle instead of mounting the hoped-for promotion push.
Manager Andy Ritchie bemoaned his side's 'lack of desire' after Sunday's 2-0 defeat at Doncaster Rovers and is desperate to bolster his options ahead of this weekend's game with his former club, Oldham Athletic.
Davy's refusal to sell had sparked protests from Town supporters at the Doncaster game and that pressure will only continue to mount unless results start to improve.
Robert Pepper, chairman of the club's Supporters' Trust, said: "The next six to eight weeks are going to be critical for the future of this football club. We need to be in a position to take advantage of the next transfer window because the current squad is not strong enough.
"We are on a downward spiral, the fans are becoming disenchanted, gates are dropping and this will reduce our income. We don't want to reach a nightmare scenario where Ken Davy says he simply cannot afford to keep the club going.
"The fans on the internet message boards or protesting at games are now unanimous in their opposition to the current regime. They see an attractive offer on the table for a controlling interest in the club and cannot see a reason why the board should not accept it."
Davy, who is also chairman of the rugby league club which shares the Galpharm Stadium, rescued Town from administration in the summer of 2003 following their relegation to the basement division.
Promotion soon followed but, last season, disgruntled fans called for the 66-year-old to resign over what they sees as a lack of investment in the team.
Pepper said: "It is not a personal issue because Town fans are grateful to Ken Davy for getting the club out of administation. He stated that he would never allow that situation to happen again but the club needed a loan of 1m to balance the books last season.
"If the club is loaning money now, the situation could get worse, so why won't he sell to Adam Pearson?"
Batley-born Pearson is a lifelong Town supporter who transformed the fortunes of Hull City before selling out to Paul Duffen in a 10m deal this summer. Prior to his six year reign as Hull chairman, Pearson was also commercial director with Leeds United.
Pepper said: "When you look at his track record, Pearson ticks all the right boxes for what should be a takeover deal in the best interests of Huddersfield Town.
"Without doubt, if this does fail to materialise, the club will have a difficult season.
"We were very poor against Doncaster and it is hard to see what is going to come and pull us out."
Meanwhile, Pepper has written to Town officials seeking an explanation for the removal of 'anti-Davy' banners during Sunday's game at the Keepmoat Stadium.
According to stewards, this was done at the request of Town directors and Pepper said: "If that was the case, it was totally out of order and a suppression of personal liberty."