GAME Group has had its shares on the London Stock Exchange suspended and is looking to file for administration after efforts to raise £180 million by the end of the week turned out to be futile.
In a statement, the retail chain said: "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 company said. "The board has therefore today filed a notice of intention to appoint an administrator."
GAME and Gamestation stores will remain open for the time being, while they still seek to bring in revenue, however, it's unclear for how long this will remain the case.
Going into administration protects GAME Group from legal action from creditors and it now shows that companies were correct in their decision to pull out their support for GAME.
Sources are claiming that the company's own greed was behind its downfall. In 2007, GAME Group acquired GameStation, which added hundreds of new stores to its portfolio. However, this move has backfired, with the company unable to compete with the likes of Amazon and digital retail specialist service Steam.