Chorion chairman Lord Alli, and his deputy chairman William Astor, have both resigned from the firm, The Guardian has reported.
According to the story, Chorion had failed to renegotiate banking deals to ease its debt burden. Although the business is thought to be performing well in the UK, Chorion breached the lending covenants governing its bank loans after it ran into trouble in the US.
It is believed that Chorion currently has a total of around £70 million in debt. Alli had been looking to restructure the business over the past few months, but support had not been forthcoming from backers.
The Guardian went on to say that Chorion is now likely to go to auction.