The consortium of Bord, Felix Romer and Alsharif Faisal Bin Jamil was named as the preferred bidder for the side who have already been relegated from the Championship well before the season ends.
A spokesperson for the consortium spoke on the decision to pull out which will come as devastating news to many supporters.
"To all the long-suffering fans of this great club, it is with the greatest regret that we have decided not to pursue our bid to become your new custodians," said a statement released by the consortium on Wednesday.
"The historic mishandling of the club and pattern of catastrophic underinvestment means our sizeable binding bid can no longer be justified.
"We have spent over £4m to help run the club over the last two months and, after much consideration, have decided that we can no longer continue to do so.
"We know this will be a bitter disappointment to many – who hoped the ownership saga would soon be over – and for this we can only apologise wholeheartedly.
"We know the rest of your season is going to be challenging, as will the next, but you will rise again to your former glory and when you do, we will be cheering your success."
The side entered administration last October and will play League One football next season as the club aim to bounce back over the next year.