Retailer Game has conceded defeat in its survival battle after failing to raise new funding, jeopardising some 6,000 jobs in the UK.
The group, which 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.
Game's shares were suspended on Wednesday after it admitted the business has no value.