Companies that run the Coventry Building Society Arena have requested to be put into administration.
Arena Coventry Limited (ACL), Arena Coventry (2006) Limited and IEC Experience Limited have issued a statement which says administration orders will be made "in the forthcoming weeks".
Former Newcastle United owner Mike Ashley is the preferred bidder, although no confirmation has been issued.
A spokesperson from ACL said: “Arena Coventry Limited (ACL), Arena Coventry (2006) Limited and IEC Experience Limited have confirmed that they have applied to the Court for the Companies to be placed in administration.
"We anticipate that the administration orders will be made in the forthcoming weeks.
“The Companies and the proposed administrators from FRP Advisory have run an accelerated sales process to sell the business and assets of the Companies and have identified a preferred bidder.
“The arena will continue to trade as normal.
"We would like to thank all the working parties involved in helping the companies get to this stage and we are delighted that the doors will remain open to this flagship venue.”
ACL has confirmed further updates will be provided in due course.
Coventry City's game on Tuesday night against Blackburn Rovers took place at the Coventry Building Society Arena, despite administration fears.
In a statement on Monday the club wrote that they "will continue to communicate with fans regarding the situation at the Arena as and when we are able to do so".
Wasps Rugby Club, who also play at the Coventry Building Society Arena, have already gone into administration.
They were suspended from the Gallagher Premiership Rugby and Premiership Rugby Cup for the remainder of the 2022-23 season.