Darlington Football Club chairman George Reynolds warned yesterday that the club faces closure unless it is allowed to hold events other than football matches at its new stadium.

The warning came at a court hearing in Newcastle, where Mr Reynolds argued unsuccessfully against a High Court injunction to prevent the club hosting a car boot sale tomorrow.

He told the judge: "If we are not allowed to fetch funds in, at the end of the season the club will close."

The chairman's comments came soon after the publication of the club's accounts, which showed an operating loss of £1.1m for the financial year ending April 2002.

The Darlington Supporters' Trust has written to the club urging it to reassure fans over its financial position, saying: "We feel an explanation about the club's financial viability would be to everyone's benefit."

Mr Reynolds represented himself and the club yesterday as he argued against Darlington Borough Council's application for an injunction to stop the club holding a car boot sale, that had been due to be held by operator George Banks tomorrow.

But the judge granted the interim injunction preventing any sale until a full court hearing on October 10 in Leeds.

Mr Reynolds said he would "abide by the law" after the judge warned him the club's assets could be disqualified and he could face a fine or prison if he broke the injunction and went ahead with the sale.

Arguing his case, he told the judge: "If they are not going to allow me to stage concerts, have car boot sales, to have anything else but football, at the end of the season we might as well close the door, that is the end of the story."