Insolvency specialists, The P&A Partnership, confirmed the news this evening after the club's directors were advised the Hatters could not continue functioning in their current state.

By going into administration, the club have incurred an automatic 10-point penalty, which will see them drop to the foot of the League One table.

Pinkney, who took over the club in April following their relegation from the Championship, has agreed to fund trading losses until the conclusion of a sales process in order for the club to continue trading in the short term, and he issued a rallying cry to the club's fans.

"This is a sad day for me personally, I have only ever had the long-term future of Luton Town Football Club at heart," he said in a statement on www.lutontown.co.uk.

"Changing circumstances and the potential huge liabilities surrounding the club have presented me with no alternative but to place the club into the hands of the administrator.

"As a further commitment to the supporters and the future of the club I have, however, decided to fund the overheads of the club throughout the sale process without any guarantee of recovering these moneys."

He added: "I sincerely hope a potential purchaser can be found to take on Luton Town Football Club and secure its future.

"The club now, more than ever, needs its supporters to put past differences behind them and get behind both the team and all the staff at the club.

"I regret that given the current circumstances I am unable to make any further comment to the media at this time."

This latest crisis comes at the end of a turbulent few days for the Hatters which have seen them face FA charges which have forced the resignation of two members of the club's board.

More than 50 charges were levelled against the club, former and current club officials and six agents by the Football Association regarding payments to players' representatives last week, and directors John Mitchell and Richard Bagehot stepped down yesterday.

A statement on The Football League's website, www.football-league.co.uk, confirmed the points deduction.

It read: "Following the announcement by Luton Town that the club have gone into administration, The Football League can confirm that in these circumstances a 10-point sporting sanction applies."

P&A Partnership are now looking to move the club forward quickly as they hunt for new investors and are hoping to have plans in place to get the ball rolling by the new year.

Spokesman Brendan Guilfoyle said: "Administration will give the club breathing space and an opportunity to restructure its finances.

"Our aim is to maximise the value of the company's assets and to place the club on a firm footing for the future."

"We feel for the fans, the manager and the players as in the short term the club will suffer a points deduction from the Football League, but hopefully the long-term prospects will overcome the short-term disadvantage.

"The Hatters is a great football club with more than 100 years of history behind it and it needs your support now more than ever."

The administrators are looking for prospective buyers to put proposals to the creditors by the end of next month, while Guilfoyle has also confirmed that the FA charges are not affected by the administration.