Administrators PwC have said that today's loss of over 2,000 jobs at GAME and Gamestation is regrettable” but that the move will place the company in a stronger position”.
And furthermore, the company still intends to agree a sale for GAME's remaining assets and for the company to continue trading as a going concern.
"Our priority is to continue trading the business as normal while we continue to pursue a sale,” a statement from PwC's Mike Jervis said in a statement.
"The group has faced serious cashflow and profit issues over the recent past. It also has suffered from high fixed costs, an ambitious international roll-out and fluctuating working capital requirements.
The recent job losses are regrettable but will place the company in a stronger position while we explore opportunities to conclude a sale. This decision is taken after careful consideration and ceaseless interrogation of every possible alternative.
My team and I will be doing all we can to help the affected employees at this difficult time.
"Despite these challenges, we believe that there is room for a specialist game retailer in the territories in which it operates, including its biggest one - the UK. As a result we are hopeful that a going-concern sale of the business is achievable.
"The board would like to thank the teams of Game and Gamestation colleagues around the world for their exemplary dedication, passion and professionalism."