TORQUAY UNITED director of football Dean Edwards says the club could still go out of business with ex-employees trying to take them to court.
Edwards represented a consortium that took over the club in the summer from outgoing lottery-winning chairman Thea Bristow.
Despite the new owners, the Gulls are working under a reduced budget but Edwards says that shouldn't be used as an excuse.
Paul Cox's men are currently 19th in the Vanarama National League with just two wins from their opening eight games.
Things are also far from ideal off the pitch too, with Edwards revealing one former employee has already won a case for unfair dismissal. The club could be forced to pay out £250,000 if all the cases go against them.
“We have a couple of people now who are trying to take us to court,” Edwards told BBC Sport. “It's a problem for us. Ultimately it could finish the football club.
“I understand their situation. They felt they've probably been wronged and they have every right to do it, and if I was honest I'd probably do it myself, but this is where we are.
“But it's a problem that gives the club not much time to put things right, because if it does go the proverbial pear-shaped, the club could be closed down.”
On the club's slow start, he added: “Woking's budget is very similar to ours and look where they are in the table (third).
“What we really need is some experienced Non-League players who really know this league and can get us to a stage where we can get more fans through the gate.
“We've got to try to get these players who are experienced, but that's where we have a problem because they're looking at the high end of our budget and we've already got high-end players.
“You couldn't account for Luke Young injuring his cruciate knee ligament, which has put him out for the season. Waide Fairhurst has an injury and he's another high earner.
“We've had a bit of bad luck in the fact that we have got those players.”
