Hearts have filed papers with an Edinburgh court to go into administration imminently.
The SPL club, who were unable to pay their players the previous week, have stated a need to raise £500,000 over the summer if they are to remain operational at the start of the season.
The Tynecastle outfit will be placed in the hands of administrators KPMG, with the process due to officially begin on Tuesday.
Hearts' financial problems stem from £15 million owed to Lithuanian bank Ukio Bankias, which has gone bankrupt, while UBIG, the club's parent company owned by Vladimir Romanov, is owed £10m.
The club has been up for sale since November 2011, with several parties understood to be interested in a takeover if the situation can be resolved, including a fans' foundation led by Ian Murray MP.
The entire Hearts playing squad have been made available for transfer this summer as the SPL side aim to cling to life in time for the 2013-14 season, for which they would be docked 15 points if they remain in administration at its beginning.