Retailer Game has conceded defeat in its survival battle after failing to raise new funding, jeopardising hundreds of West Midlands jobs.
The group, which employs more than 6,000 people and was reportedly battling to raise £180 million this week, said it intended to appoint administrators as rescue talks have not made sufficient progress.
Game, which operates 600 stores in the UK and 1,300 worldwide, intends to appoint administrators in the coming days but in the short term it will continue to trade as discussions with its banks and other potential funders continue.
This will fuel expectations that it will attempt a pre-pack administration deal involving the sale of some of its estate.
It is understood that one of Game’s main lenders, taxpayer-backed Royal Bank of Scotland, objected to the terms of a rescue deal with private equity firm OpCapita, which recently bought electrical goods retailer Comet.
Earlier today, Game’s shares were suspended after it admitted the business has no value.
Game has outlets in the Pallasades, Bullring, Fort Shopping Centre, West Bromwich, Sutton Coldfield, Solihull, Walsall and Dudley.