GAME Group, which sells computer video games and consoles, has filed for administration.
The firm made the announcement shortly after its shares were frozen saying “there is no equity value left in the Group”. GAME will continue to trade in the short term while discussions continue.
GAME said in a statement, "Further to this morning's announcement of the suspension of trading in shares of GAME Group plc, the board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business. The board has therefore today filed a notice of intention to appoint an administrator.”
“In the short term the Board's intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium."
The retailer has more than 1,300 stores under the GAME and Gamestation and has more than 10,000 employees. Shares closed at 2.39p earlier after falling from 62p a year ago.
Recently it was unable to secure top titles including Electronic Arts’ Mass Effect 3 and had to turn away paying customers. It has struggled to compete with the likes of Amazon and Steam.