Game has suspended trading on the London Stock Exchange as it concludes there is no equity left in the business.
The embattled retailer said: “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.”
The retailer was thrown into crisis earlier this month when major games producers, including EA and Capcom, refused to supply Game with their key releases.
It was offered a lifeline last week by Comet-owner OpCapita which put together a rescue plan for the retailer that involved taking on Game’s debt and paying its suppliers. However, Game’s banks are understood to have rejected OpCapita’s proposal.
Observers have cautioned that Game faces administration.
Analyst Nick Bubb said: “It looks nearly all over at poor old Game. The banks are clearly close to pulling the plug, so all eyes turn to see what US giant GameStop, which is busy preparing its Q4 results in the US tomorrow, will do to pick up the pieces in the UK.”
If it survives, the retailer is expected to close up to half of its 600 stores, according to The Financial Times. Game is struggling to raise £180m by this weekend as its quarterly rent day looms.
Game collapses into administration, 6,000 jobs in jeopardy
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Game suspends shares as no equity left in business