Game Group is set to appoint the restructuring team at Deloitte to help it devise a plan to turn around the business next year.
The embattled computer games retailer has also spoken to restructuring teams at other firms over recent weeks according to The Independent, but Deloitte is understood to be the front-runner.
Last month, Game issued its second profits warning in five months, and revealed its like-for-like sales have plunged 8.6% in the 41 weeks to November 12. Total group sales were down 10.6% in the period
Game is expected to post a loss of £12m for its year to 31 January. Despite forecasting that full year like-for-likes will be no better than a 7% drop chief executive Ian Shepherd said that the retailer was outperforming the video games market which has been hit by depressed consumer spending.