Arena Coventry Limited (ACL), who manage the stadium on behalf of joint owners the Alan Edward Higgs Charity and Coventry City Council, announced on Thursday that talks with the League One club's owners Sisu had "collapsed".
A statutory demand for £1.1million in unpaid rent stretching back 10 months was issued to the Sky Blues in early December - a figure which now stands at more than £1.3million - and ACL chairman Nicholas Carter warned "now is the time for Sisu to pay up or sell up and get out of Coventry".
ACL also claimed Sky Blues directors had backtracked on a verbal agreement made between the two parties towards the end of January to primarily cut the £1.28million annual rent to £400,000, as well as waive more than £300,000 of the debt amid other details including a revised share of matchday revenue.
The feud was stepped up a notch yesterday as Coventry saw their bank accounts frozen by ACL, who have issued the club with interim Third Party Debt Orders in a bid to recoup the money owed to them.
In light of the latest developments, Coventry have made their first official comment.
A statement on the club's website read: "Despite the recent campaign by ACL to force the football club into a deal that would be completely disadvantageous, Coventry City Football Club remains committed to work through to the conclusion of a deal that is acceptable to both parties.
"This deal must take into consideration matchday revenues to support the need for a squad which is strong and competitive and yet still complies with Financial Fair Play and salary cap rules.
"Therefore, we again propose to invite a leading expert in football finance - such as Deloitte - to act as mediator and help drive through a deal which makes sense."
City, consigned to third-tier football for the first time in 48 years when they were relegated from the Championship last May, left their Highfield Road home in 2005 to take up residence at the 32,000-seater Ricoh Arena.