Brian Kennedy has confirmed that the Blue Knights group have failed in their latest efforts to buy Rangers.
Majority shareholder Craig Whyte yesterday said that he was prepared to sell his 85% stake in the club.
Administrators Duff & Phelps have revealed that four groups are interested in buying Rangers, but have rejected a new offer from the consortium lead by Sale Sharks owner Kennedy and Paul Murray.
A statement from the administrators read: "We have continued discussions with the parties remaining in the bidding process and good progress has been made."
"We can also confirm that Craig Whyte has confirmed that he will transfer his shareholding in Rangers Football Club to two of the parties and has indicated he would not be an impediment to a sale of the club.
"We will issue a further update for supporters tomorrow and can say that every effort is being made to conclude the sale of the club as quickly as possible."
It is thought that a London-based consortium are the preferred bidders for the Glasgow outfit.
