STAFF have been warned to prepare for the threat of redundancy as crunch talks to save the Bulls enter a third day.

Administrator Gary Pettit confirmed that consultation letters are being sent out to employees with the club's future still up in the air – but he hopes the "plan B" will not go ahead.

The T&A understands that the sole remaining bid for the Bulls involves former New Zealand and Wigan coach Graham Lowe and former Kiwis chairman Andrew Chalmers.

They began negotiations with the Rugby Football League on Tuesday over the lease on Odsal and the meeting was adjourned with both sides going away to consider "a few reality checks".

Pettit had been hopeful that it could be sorted yesterday but a second round of talks, described as "very thorough" by a source close to those involved, again failed to reach agreement.

Pettit said: "The RFL are in a difficult position. They've got to be seen to be acting for the full membership of rugby league and not just singling out one member club – but equally they want to help out the club.

"It's a fairly precarious balance to try and find to make sure they don't break their own constitution.

"We have a willing buyer that I think would be excellent for the club going forward with the financial backing it would need.

"But they also want to buy the ground and turn it into a stadium. That needs the surrender of the lease and that's what these talks are about.

"It's quite frustrating. It's just trying to nail that even balance that the RFL can take to its fellow members, so they do have a bit of a conflict of interest. But I'm utterly convinced they want to do everything they can.

"We have issued consultation letters to the employees to protect their position but we are hopeful it's a plan B that will never be needed – it's just in case these talks fail."