If club can't find new owners, they will reform in fourth tier.

Serie A club Parma have been declared bankrupt by a court in Italy.

The move closes a turbulent few months few weeks for the club and comes a day after police arrested the club’s owner and 21 others on charges including embezzlement and money-laundering.

The league has said previously that if the club had to was unable to fulfil its remaining fixtures, all previous results this season would stand, but future results would all be recorded as 3-0 wins to the opposition.

The club has collaped with over €213 million worth of debts and have failed to pay players and staff since the summer, as well as being sold twice in the last two months for a token €1 on each occasion.

The Court in Parma has now appointed Angelo Anedda, President of the order of Chartered Accountants of Parma, and Alberto Guiotto, Commission President of the National Council of Certified Accountants and Accounting Experts, as receivers.

The club will restart in Serie B under new owners, provided they have cleared sporting debts in the region of €73 million. But, if new owners are not found, then Parma will be dropped down to Italy’s fourth tier, under a different name.

An emergency loan fund of €5m was agreed with Lega Serie A and should now be made available so Parma can fulfil their fixtures for the rest of the season.