Game Group has announced that it has been unable to get deliveries of new stock from suppliers, amid speculation that the company is just two weeks from administration.
The group - which owns video games shops Game and Gamestation - said in a press release on Monday that it remains in discussion with stock suppliers, but admits that it has been unsuccessful in sourcing new products from "a number of suppliers."
The UK's two remaining high street video game specialists have been in trouble for some time, but it was brought to a head in early March when the shops were unable to stock copies of blockbuster game Mass Effect 3 as a deal could not be made with its developer.
As a result, customers who pre-ordered with Game were offered in-store credit as a refund, forcing them to buy the game elsewhere. It is the same story for all other future releases from Electronic Arts (EA).
The company said on Monday: "Further to GAME's announcement of 29th February 2012 and recent press speculation, the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3 February 2012, and to meet its revised strategic plan. While these discussions are ongoing, it has not been possible to source new products from a number of suppliers."
Essentially, Game has been unable to meet the demands of the product suppliers, who provide the stock and are paid back by Game once it has been sold. This statement would suggest that suppliers are not confident that Game can sell enough stock to pay them back.
The statement continued: "The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories."
"It is uncertain whether any of the solutions currently being explored by the Board will be successful or will result in any value being attributed to the shares of the Company."
On Friday it was revealed by game industry trade magazine MCV that Game Group's CEO had warned his management team of the company's future and that they have roughly two weeks to save the company before it is forced into administration.
As suggested by Pocket-Lint, a partial or full takeover by US retailer GameStop looks to be Game Group's only solution.
In the meantime, Game has started its Spring Sale, where it is selling products at heavily reduced prices in an attempt to raise money and keep the company afloat long enough for an investor or buyer to be found.