A LEADING computer game retailer was last night on the brink of collapse after suppliers refused to send it the latest blockbuster titles.

Game, which employs 10,000 people, warned shareholders their equity in the firm could be worthless as it prepared to sell its UK business which has 600 stores.

The group's quarterly rent bill is due in a fortnight and failure to pay landlords could nudge it into administration.

The firm has faced intense competition from internet retailers and supermarkets who often sell computer games as loss leaders. It has also been slow to react to competition from Aps such as Angry Birds downloaded by smart phone users. Its woes have been made worse in recent weeks as the chain has had been unable to sell its customers the latest must-have titles.

Electronic Arts, the publisher of Mass Effect 3, and Capcom, the company behind Street Fighter X Tekken and the Resident Evil games, have refused to supply Game with their forthcoming titles over fears they will not be able to reclaim the stock if the company goes bust. Nintendo has also refused to allow Game to sell its Mario Party 9 game. Other suppliers have threatened to follow suit.

Shares in Game, which have already lost more than 95 per cent of their value over the past year, crashed to 1.2p yesterday, valuing the company at just £4.2m. It expects that losses for the year to the end of January are likely to be around £18m.

The firm has been seeking alternative sources of funding and also closing stores and moving into digital gaming to avoid the fate of other struggling retailers, such as HMV.

In a statement yesterday Games bosses warned that "it is uncertain whether any of the solutions currently being explored by the board will be successful or will result in any value being attributed to the shares of the company."

It has appointed investment bank Rothschild to find a buyer, but it is likely to be difficult to find one before the looming rent deadline. Game's Spanish arm could attract the attention of US rival Gamestop, but its British, French and Australian divisions may be sold through a controversial pre-pack administration arrangement.

Game has a total of 1,270 stores, some trading under the Gamestation brand, across Europe and Australia.