Concerns have been raised over the long-term future of Watford Football Club (WFC), after executive chair Jimmy Russo resigned from the club's board and demanded repayment of loans worth nearly £5m.

Russo, together with executive vice chair Vince Russo and non-executive director Robin Williams, stepped down from the board of Watford Leisure - the club's AIM-listed parent company - immediately before its annual general meeting on 15 December. WFC, which competes in the Coca-Cola Championship, now faces the prospect of having to call in administrators after Valley Grown Salads (VGS), a company which Jim and Vince Russo both have an interest in, demanded that the club repays £4.88m by the end of today (16 December).

The demand comes nearly three weeks after Watford Leisure announced that it had been forced to increase its borrowings from VGS by an additional £1m in order to cover its cash requirements until 22 December. A spokesperson for Watford Leisure said: "Pending resolution and clarification of its financial position, the company has requested that its shares be suspended from trading on AIM.

"In the event that a funding solution cannot be obtained then the company may have to be placed in administration. A further announcement will be made in due course." Trading in Watford Leisure shares on the AIM has now been suspended while the group seeks to clarify its financial position.