Mastertronic-owned The Producers have backed out of a high-profile plan to align distribution efforts with Trilogy.
Just three weeks ago The Producers and Trilogy announced plans to take on the likes of Gem, Centresoft and Koch Media by creating an alternative distribution business for entertainment goods.
At the time, the two said the move would 'offer even more value through the supply chain' through a mix of white label, traditional distribution, digital offers - and a reduced cost Nintendo service.
But now Mastertronic says financial concerns about Trilogy has caused it to cut ties with the distributor and back out of the strategic partnership.
"We entered into a strategic alliance with Trilogy Logistics to provide an alternative route to market for software, music and film publishers," Mastertronic Group MD Andy Payne told MCV.
"Sadly we found that Trilogy Logistics were facing severe financial problems and decided that we could not risk our reputation and customer relationships any further and ceased all association and trading with them today."
Trilogy is best known for snaring the rights to distribute products for key publishers such as Ubisoft, Square Enix and (now defunct) Midway. The firm was formed as part of an MBO from previous distributor Andromeda.