The debt-ridden company behind Chester City FC has today been wound up, the club have confirmed.

Chester City FC 2004 Ltd failed to settle its debts with HM Revenue & Customs resulting in the adjudication at the high court in London this morning.

In January, the company was given six weeks to finalise proposals for a Company Voluntary Arrangement (CVA) aimed at enabling the club, which was formed in 1885, to clear their immediate debts – £26,125 of which is owed to the taxman.

They, however, failed to do that and so today succumbed to a compulsory winding up order.

But supporters have vowed to resurrect Chester, which was expelled from the Blue Square Premier division last month.

Speaking outside the high court, supporting creditor David Evans, who is on the board of City Fans Ltd, said: "It's quite emotional but it means a fresh start. It means we can have our club back. We hope we will now be a reformed club."

Fellow fan Sue Choularton added: "In a way it is very sad, but we are planning on starting up a 'phoenix club' to start again, possibly in Unibond League One. We have already got 1,000 members."