Carlisle United's League Two rivals Morecambe say they have been placed under a transfer embargo.

The crisis-hit club's board have hit out at its owner after it was revealed they cannot make any more January signings.

Morecambe, who sit second bottom, a place and two points above Carlisle, said the decision comes after those in control of the Shrimps have failed to provide assurances over the funding of the club until the end of the season.

Bond Group, the club's directors say, have "failed to provide" proof of funding despite earlier assurances over this ahead of the transfer window.

Reports have said the Shrimps wanted to sign Barnsley's ex-Barrow loan striker Andy Dallas but have been prevented from doing so by the financial situation.

A statement from the club said: "Morecambe Football Club is currently prevented from making further signings in the January transfer window, despite recent cup successes and capital injections, because written assurances from Bond Group that the club will be funded to the end of the season have not been supported by sufficient proof of source and sufficiency of funding.

"The club must demonstrate it has adequate funds to operate until the end of May, its fiscal year-end.

"Only once these long-standing cash requirements are met can recruitment be considered.

"Bond Group had assured the club that it would meet these requirements and support additional player recruitment in January, but when proof of funding was requested, it failed to provide it.

"Bond Group has informed the club today that it is working on sourcing additional funds, but there is no guarantee that these will land in time to impact the rest of the transfer window.

"The board wishes to place on record that once again the club has been let down by its owner, undermining the efforts and hard work of the manager, staff, and directors at this critical time.

"The board of directors is carefully evaluating the situation and will make a further statement in due course." The Bond Group and Jason Whittingham, who have owned Morecambe since 2018 and who have been the subject of fan protests this season, have yet to issue any comment in response. Hopes of a takeover have yet to be realised at the Mazuma Mobile Stadium.

The Shrimps, whose assistant manager is the former Carlisle captain and Workington Reds boss Danny Grainger, face a trip to Colchester United in League Two this weekend. They host Carlisle in a potentially huge survival six-pointer on April 12, having won 1-0 at Brunton Park on Boxing Day.

The EFL have yet to comment while Morecambe's embargo is not yet listed on the league's website, but in December it was announced that Morecambe had been served with a suspended two-point deduction over HMRC payments.

The penalty will be activated should the club fail to notify the EFL of any future HMRC default prior to June 30, 2026.