UPDATE: Game Group has announced that it is to appoint an administrator, following the suspension of its shares on the London Stock Exchange on Wednesday morning - 6,000 UK jobs at risk.
The group - which owns high street retailers Game and Gamestation - 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."
Trading of Game Group shares were suspended from the London Stock Exchange on Wednesday morning and it was announced that there is no longer any value in the company.
The announcement came after news broke on Friday that a potential buyer of the struggling video game retailer pulled out from takeover negotiations, leaving the retail chain with no financial support and dwindling stock to sell.
Game Group said in a statement on Wednesday: "Further to the announcements of 12 March 2012 and 14 March 2012, the board of GAME has assessed the status of the ongoing and regular discussions between GAME and its lending banks and between its lending banks and a potential third party provider of finance to the business."
"The Board now considers itself to be unable to assess the business's financial position, and is of the opinion that there is no equity value left in the Group. Therefore the Company has requested that the listing of its securities on the Main Market of London Stock Exchange plc be suspended from trading with effect from 7:30am today."
Game's share price closed on Tuesday at 2.39p (down from 62p just a year ago), giving the Group a market cap of around £8.3m, and it is now unclear what the next move is for the company, which has 1,300 shops worldwide and employs 10,000 staff.
The Press Association is reporting that the group faces a £21m rent payment due on Sunday and a £12m wage bill due at the end of March. Game also owes more than £10m in VAT and £40m to suppliers. Any potential investor would have to pay up to £100m to Game's banks.
The company was believed to be trying to raise £180m this week or face administration after several suppliers refused to provide stock to sell.
On 12 March the Group admitted that talks with stock suppliers had broken down, this followed earlier bad news when EA announced that it would no longer provide Game with stock, meaning the retailer could not sell the hugely popular Mass Effect 3.
Following on from this, on 14 March the group announced that it was in talks with a buyer to agree a rescue package. The buyer was believed to be the owner of electrical retail chain Comet, and there was further speculation that Walmart was also interested, but negotiations broke down on Friday.
Game Group owns 600 shops in the UK, employing around 6,000 staff; these shops include Game as well as Gamestation retailers.