A troubled arts venue at the heart of the Edinburgh Festival Fringe is facing a new crisis after being hit with a winding up order from the government.

HMRC has begun proceedings against the management company of Summerhall, the home to an "arts village" of more than 120 businesses and freelancers which has been running since 2011. While the venue has said it will continue to trade, the winding up petition will impact its ability to stage and host certain events.

The venue - which is comprised of the old Dick Veterinary School and two adjacent Brutalist buildings - is owned by Oesselmann Estates Limited, the family trust of Robert McDowell. Mr McDowell is also the director of Summerhall Management, which acts as the commercial liaison between the building's owner and its tenants.

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HMRC has presented a petition to wind up Summerhall Management on the basis that corporation tax is due but remains unpaid. Mr McDowell says this is not the case and has vowed to defend his corner.

"We believe there is no corporation tax due to HMRC and have been working with professional advisors to address and resolve matters with HMRC," he said in a statement. "Summerhall Management are defending the proceedings raised and we hope a resolution can be achieved which will allow us to deal with this and move on quickly.

"At this time, we must follow a very strict set of guidelines imposed upon us of what we can and cannot do, please bear with us whilst we work to fully understand the situation. The team are already in communication with those we work with who may be affected by this action, but we intend to trade as best we can, and in line with what is permissible, whilst we defend this action.

"The landlord, on whose behalf we manage the building, have also been made aware and will be in direct communication with their tenants as required."

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The future of Summerhall has been increasingly uncertain since May when it emerged that the 130,000sq ft site has been put up for sale by Oesselmann Estate Limited. The closing date for offers passed on September 18, with no news yet released about a potential buyer.

Summerhall attracts an audience of more than a million people annually, including 250,000 in August alone. More than 100 different shows and events were staged there during this year's Fringe, with the venue also used for Edinburgh International Film Festival screenings.

Summerhall Arts - an independent charity separate from Summerhall Management - is trying to raise £150,000 through a crowdfunding campaign to maintain current levels of programming at the venue.