The British Ski and Snowboard Federation (Snowsport GB) is to go into administration following a loss in private funding.
Since the £60,000 refinancing package last August, two sources of funding have been deferred and a £30,000 overdraft facility has been withdrawn by the Royal Bank of Scotland.
The BSSF's bankruptcy will not prevent British skiers and snowboarders from taking part in the 2010 Winter Olympics. The International Olympic Committee has rules which allow for athletes to complete in the Games even if a sport does not have a national federation.
The financial difficulties have had serious knock-on effects to the athletes. Mark Tilston, the coach of top British skier Chemmy Alcott, told BBC Sport that coaches and skiers have had to pay for hotels and lift passes at races because of Snowsport GB's money problems, and it was having a big impact on their Olympic preparations. He said, "Some of these guys have dedicated more than a decade or more to the sports and they find themselves not able to prepare properly for the Olympics. It's a terrible situation."
The full line-up for Team GB heading to Vancouver was announced Jan. 26. The 13 snowsport athletes include four skiers, four snowboarders, three cross country skiers, and two freestyle skiers.