Game’s largest shareholder has disposed of its entire stake in the business, leaving mogul Mike Ashley as the largest single influence on its board.

American hedge fund Elliott Management held a 37% stake in Game. Ashley holds 25%.

Non-executive director James Shinehouse, who represented the hedge fund on Game’s board, is stepping down.

Game’s shares fell 13% on the news.

This follows a significant improvement in February after news broke that Ashley’s Sports Direct was partnering with Game on in-store gaming arenas, taking on a 50% stake in that part of the business.

Game plans to roll out the arenas to 100 locations over the next three years.

The gaming specialist has managed to improve its fortunes somewhat by focusing on experiential offers rather than sales of physical media.

The retailer posted a slight rise in overall revenue at its last update, with sales rising 3.9% in the six months to January 27, boosted by a 31% rise in revenue from events and e-sports.

However, profits spiralled 25%, exacerbated by a steep decline in the profitability of its retail arm.

Chief executive Martyn Gibbs said: “Elliott has been an engaged investor, and I would like to thank them for their support of Game as we developed the operations and strategy of the business over the last six years.

“We have devised a strong growth strategy and are now well positioned to drive the transformation of our business, as we move from a seller of physical products to a provider of gaming experiences.”