Rangers' administrators are seeking a swift sale of the club after failing to agree cost-cutting measures with the playing staff, Duff and Phelps announced today.
Discussions over how to make savings have ended without a resolution which would devalue the playing staff "on terms that will preserve the value in the business", joint administrator David Whitehouse said.
Whitehouse said in a statement: "We are announcing today we are accelerating the sale of Rangers Football Club. The club is in a perilous financial situation and that should not be under-estimated."
He added: "Regrettably, we have been unable to agree cost-cutting measures with the playing staff on terms that will preserve value in the business. We understand the players' position as the scale of wage cuts required to achieve these savings without job losses were very substantial indeed.
"In view of this, we are faced with a situation of making redundancies within the playing staff on such a scale that would materially erode the value of the playing squad. We are striving to strike a balance where cost-cutting measures can be implemented but do not destroy the fabric of the playing squad to the extent that it will inhibit the prospect of a sale."
Administrators, who took control on February 14, are seeking to make savings of Â£1million per month. Duff and Phelps had set Monday as a final deadline to reach a consensual agreement but they reconvened on Tuesday morning to discuss another proposal from players and talks resumed on Wednesday.
Unless a buyer is found quickly, administrators will have no choice but to make the necessary cuts which would leave Rangers in danger of failing to fulfil their fixtures for the remainder of the Clydesdale Bank Premier League season.
Whitehouse said: "No-one should be in any doubt that in the absence of sufficient cost-cutting measures or receipt of substantial unplanned income, the club will not be able to fulfil its fixtures throughout the remainder of the season.
"As a result, we are expediting the sale process and over the next few days we will be holding discussions with prospective purchasers who have declared their interest. "The manager, Ally McCoist, will play an integral part in these discussions.
"If, however, it becomes apparent that the sale process cannot be accelerated there will be no choice but to implement very severe cost cutting measures at the club."