Paul Duffen has resigned from his post as Hull City chairman less than 24 hours after the Tigers were forced to issue a statement denying that manager Phil Brown had been sacked. "The club has received a letter of resignation from Paul Duffen, executive chairman of Hull City AFC and Superstadium Management Company Ltd, which has been accepted and is effective immediately," a statement on the club's official website read. "Paul's departure is on a totally amicable basis and he leaves with our best wishes as a friend of the club and its directors. "The club wishes to express its gratitude to Paul for his outstanding contribution as chairman during a period of unprecedented success for Hull City AFC. "The recruitment process has commenced in respect of the appointment of a new executive chairman and a further statement in relation to this will be issued by the club on Monday, 2nd November." Duffen's resignation comes after auditors Deloitte issued a public warning about the club's ability to continue as a "growing concern". Hull's accounts, released this week, five months behind schedule – showed borrowings of £22m. Deloitte predicts the club will have to raise £23m to balance their books should they be relegated, and £16m if they survive. Duffen's departure also comes as Hull are struggling on the pitch, currently sitting at the bottom three of the Premier League table. Former Hull chairman Adam Pearson, who Duffen replaced in June 2007, has been strongly linked with a return to the KC Stadium after stepping down from his post with Derby on Wednesday. Duffen's departure could now increase the pressure on Brown, with Duffen having been a consistent defender of the under-fire manager.