The group, which last week told its senior staff that it had two weeks to save itself, has hired independent advisory group Rothschild to find a buyer, says The Sunday Times (via MCV).
The British arm of GAME could go through pre-pack administration, which sees a buyer lined up for the business before it goes into administration of liquidation. Deloitte is also reportedly on standby to handle any insolvency process.
While US retailer GameStop is said to be interested in buying GAME's Spanish stores, little is known about its other branches in France and Australia.
Meanwhile, GAME has issued an official statement where it has admitted it has "not been possible" to acquire stock from numerous suppliers and is "working actively" to solve the problem.
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The chain recently announced 35 store closures and that it is going to shut sister website gameplay.co.uk.
GAME recently received lender support to alleviate financial troubles following apparent concern by publisher EA.
The high street retailer's shares plummeted by 90% in 2011, despite £1 billion in annual turnover.
GAME's statement in full:
"Further to GAME's announcement of 29th February 2012 and recent press speculation, the Group confirms that it remains in discussions with its suppliers and lenders in relation to terms of trade that allow the business to operate within the facility provided by its banking syndicate, as announced on 3 February 2012, and to meet its revised strategic plan. While these discussions are ongoing, it has not been possible to source new products from a number of suppliers.
"The Board of GAME is working actively to resolve these issues as quickly as possible. This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.
"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."
View images from the PlayStation Vita launch at GAME's Oxford Street below: