GAME Group has gone into administration after failing to find a buyer.
The news brings doubts over the staff which the retailer employs at its 1,300 stores worldwide. It announced that it was filing for administration last week shortly after suspending its shares on the stock market.
Administrators from PricewaterhouseCoopers (PwC) said the firm suffered from high fixed costs and an ambitious international expansion, according to the BBC.
Mike Jervis, an administrator from PwC said: "Despite these challenges, we believe that there is room for a specialist game retailer in the territories in which it operates, including its biggest one, the UK"
"As a result, we are hopeful that a going concern sale of the business is achievable."
GAME Group said: "Further to our announcements of 21 March, the Board of GAME has completed its discussions with lenders and third parties without resolution, and has therefore today appointed PWC LLP to act as administrators for the Group. This decision is taken after careful consideration and ceaseless interrogation of every possible alternative. The Board would like to thank the teams of GAME and Gamestation colleagues around the world for their exemplary dedication, passion and professionalism."
The firm employs around 10,000 staff around the world, more than half of which are in the UK. PwC will apparently honour around £12 million of sallies due at the end of the month, according to Sky News.
GAME Group has to turn away customers after failing to secure copies of big titles including Mass Effect 3 by Electronic Arts.