Former Swiss champions Servette have been declared bankrupt by a Geneva court on Friday.
The judge demanded that the club had the financial backing to reach a deal with creditors over its million Swiss francs ($8.33 million) debt.
Servette have 10 days in which to appeal the decision before it becomes final.
If the ruling is confirmed, as appears likely, Servette would, along with FC Lugano and Lausanne Sports, become the country’s third top division side to collapse in the space of three years.
If they are unable to comply with the judge’s request, Servette will be demoted two divisions.
Servette’s problems began in 2001 when French television group Canal Plus reduced their stake in the club.
Last year they were taken over by former player’s agent Marc Roger, who authorised the buying of 21 players, including French World Cup winner Christian Karembeu. However, Roger did not have the money to fund these purchases and it has been reported that none of the staff have been paid since September.