Clifford Chance (CC) and Travers Smith are advising GAME Group as the video games retailer confirmed today (21 March) that it has filed a notice of intention to appoint an administrator.

The confirmation comes after the company announced that trading in its shares had been suspended pending clarification of its financial position.

CC is advising the company on its ongoing negotiations with its lending banks and a potential third party investor, with the magic circle team fielding a team led by banking and finance and restructuring partners Iain White and Mark Hyde.

Travers is also advising GAME on the discussions, led by corporate finance partner Richard Spedding.

Linklaters is understood to be in line to take the lead role for GAME's administrator – touted to be PricewaterhouseCoopers partner Mike Jervis – fielding a team led by banking and restructuring partners Bruce Bell and Chris Howard. The magic circle firm is also advising GAME's lending banks, which include RBS, Barclays and HSBC.

In a statement, GAME said: "The board has concluded that its discussions with all stakeholders and other parties have not made sufficient progress in the time available to offer a realistic prospect for a solvent solution for the business.

"The board has therefore today filed a notice of intention to appoint an administrator. In the short term the board's intention is that the business will continue to trade and discussions with lenders and third parties will continue under the protection of the interim moratorium."

The news comes after it emerged earlier this month that a number of the gaming retailer's suppliers were refusing to do business with the company in light of outstanding payments owed. According to press reports the company needs £180 million to pay creditors, suppliers and banks.

It is currently in talks with a third party – believed to be private investment firm OpCapita – over the provision of additional funding; however, GAME has said "there is no certainty to the outcome". Macfarlanes private equity partner Stephen Drewitt is advising OpCapita.

OpCapita also bought struggling UK electrical retailer Comet Group in November last year for just £2, with Slaughter and May advising Comet parent company Kesa Electricals, Macfarlanes acting for OpCapita and SJ Berwin advising Comet's management.

The news follows a review of GAME's external legal panel last year, with CC, Travers and Shoosmiths appointed to the new line-up in October.

The panel review was the second carried out by the gaming retailer in the last two years, with the three-strong roster replacing the previous line-up appointed in August 2010 that consisted of Pinsent Masons, legacy Hammonds, Bond Pearce and Shoosmiths.