The group, which is reportedly struggling to raise € 216 m this week, said it intended to appoint an administrator in the coming days as the rescue talks have not made sufficient progress.
The game operates 13 stores in Ireland and 600 stores in the UK. In the short term will continue to trade as discussions with banks and other potential funders continue.
This would fuel hopes that it will seek an agreement pre-pack administration involving the sale of some of his residence.
It is understood that one of the game’s major lenders, a taxpayer-backed Royal Bank of Scotland, objected to the rescue agreement with the requirements of private equity firm OpCapita, which recently bought electronic goods retailer Comet.
Yesterday, the game shares were suspended in early trade after it admits business has no value.
In a statement, the group said: “the Board has concluded that it is in discussions with all stakeholders and the other party does not have enough make progress in the time available to offer realistic prospects for the solution of solvent for business. ‘
Notice to appoint administrators will buy them time to continue discussions with a prospective funder and stop creditors forced it below.
It has been reported that the Game faces € 25 m payment of rent due on Sunday and € 14 m wage bill at the end of the month, owed more than € 12 m in VAT and € 48 m supplier. New investors must pay up to € 120 m to the bank the game.
The game has suffered terrible trade in recent months, which have been forced to ask the suppliers of trade terms are more generous.
Agree a fresh loan facility with the banks last month and started looking for access to alternative sources of funding. It’s already a loss for the year to the end of January tend to be around £ 18 m (€ 9.6 m)
Pre-order Pack administration offer controversial because they allow some or all of the business to be sold but debt that must be eliminated, meaning creditors lose most of their money.
But administrators said the deal allows profi parts of the company to survive and work to be saved. The Group employs a staff of 10,000.
