Despite conflicting reports yesterday suggesting that RBS (Royal Bank of Scotland) was ready to mount a bid, GAME revealed this morning that it was entering administration and that professional services firm PwC (PricewaterhouseCoopers) had been appointed administrator.
"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," reads a statement issued by GAME.
"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."
Despite the setback, PwC's Mike Jervis believes that a sale of the business is achievable, reports MCV.
"The group has faced serious cashflow and profit issues over the recent past. It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements," Jervis revealed.
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"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 announced its intentions to file for administration following the firm's delisting from the London Stock Exchange.
Closing its chain of GameStation stores is said to be one of the main avenues GAME Group is exploring to cut costs.
The high street retailer's shares plummeted by 90% in 2011, despite £1 billion in annual turnover.
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Photo gallery - Modern Warfare 3 launch at GAME: