Beleaguered Bradford have admitted they could be forced to go into administration within a fortnight after being hit by a winding-up order from HM Revenue & Customs.
Insolvency firm The P&A Partnership, who were brought in last month to conduct a review of the club's finances, revealed the latest development in a press release posted on their website.
They confirmed that, despite fans recently raising £500,000 to keep the club afloat, the Bulls still need more than £1million to survive to the end of the season and pressure from the taxman prompted the club to take a step closer to administration.
Brendan Guilfoyle, of The P&A Partnership, said: "HMRC is threatening to wind up Bradford BullsHoldings Ltd and, under these circumstances, the directors have had no alternative but to file a notice of intention to appoint administrators to protect the club.
"This proactive decision gives the club a breathing space to find partners to invest in the club.
"It doesn't mean that the club will necessarily enter administration. The club has two weeks to find additional funds - this may mean a number of investors coming together to save the club."
Bradford director Stephen Coulby, who recently rejoined the board following the resignations of chairman Peter Hood and co-director Andrew Bennett, said the club remained determined to avoid entering administration and are hoping to buy more time to find fresh investment.
"Unfortunately, developments last Friday and pressure from HMRC has meant that we have had to seek protection whilst talks with investors continue now that we have ascertained the full extent of the club's debts," Coulby said.
"Had the actual position been as we understood it to be, that is to say a requirement for £1m, half of which had already been raised through the sterling efforts of supporters, it would not have been a problem.
"Regrettably, other matters have recently been brought to our attention which have widened the funding gap but we are still intent on avoiding administration and its consequences if at all possible."