Blackpool manager Simon Grayson says he is "shocked" and "saddened" by Bury's expulsion from the English Football League (EFL).
Bury owner Steve Dale had been given until 5pm on Tuesday to come up with a plan for paying the club's debts and funding them going forward or sell them to someone who can.
It had been hoped that C&N Sporting Risk would be the answer but the London-based firm pulled out of the deal 90 minutes before the deadline, citing concerns over the club's confusing debt structure.
The EFL subsequently decided to withdraw Bury's membership, which will almost certainly result in the 134-year-old club facing liquidation.
“Everyone throughout football is really saddened with what has happened at Bury this week," Grayson said.
“It’s a reminder of what can happen to clubs when they are mismanaged.
“I was driving back from Sheffield United at the time the news came out and I was shocked.
“You genuinely believed, like a lot of people did, that they would be saved and somebody would come in.
“The EFL would be a better place with Bury Football Club in its league, so it’s such a shame that supporters have lost their club and players and staff have lost their jobs.
“We’ve also lost one of our founder members of the EFL, so it’s a crying shame.
“If there’s any way to resurrect the deal or not, I’m not sure, but it’s a tragic story.
“I know there’s a lot of good people that work there. I spoke to them when I left Sunderland as they enquired about me going there but at the time it wasn’t to be.
“It’s a sad situation, but it is a reminder to everybody you have to cut your cloth accordingly because these things can happen. They can spiral out of control very quickly.
“It’s not just Bury, look at Bolton as well. They’ve been very close to the same situation.
“They’re an ex-Premier League club that has had millions of pounds go through the club, but this is a reminder you have to do what is right."
While Blackpool have endured a struggle against a rogue owner in recent years, things are looking much rosier now Simon Sadler is in charge.
“This club went through terrible stages, but never to the brink like Bury have gone to," Grayson added.
“Nobody wants to go there. Our club has been through some tough times in previous years, as have Portsmouth who we play this weekend.
“But hopefully we’re coming through the right side of it now and we’re going to see a lot more positivity with this club.
“And Portsmouth will be the same because they’ve got rich owners from America and they’ve given themselves an opportunity to get back to the Championship.