Activision's confirmed to Develop it has made a "recommendation" that Bizarre Creations closes.
Activision's Worldwide Studios' COO Cody Johnson told the site it had tried to "find a buyer" for the Liverpool-based developer.
"I want to be clear, our first choice was to try and keep this group together and find a buyer for the studio," he said, adding it had "explored a lot of leads – pretty much anyone you can imagine in the industry."
But Johnson said that it was not able find any "interested parties," saying the recommendation was a "last resort".
"But unfortunately, so far we’ve not been able to find and interested parties. So we’ve made as a last resort, a recommendation to the team for closure.”
It was first reported back in November that the studio was set to close with the loss of 200 jobs.
But Activision told VG247 in a statement that it was "exploring our options regarding the future," putting the studio under a 90-day consultation period, as required by UK law.
It was then reported that "multiple parties" were interested in buying the developer, but nothing has surfaced since.
If Bizare does close, its final game would have been James Bond: Blood Stone for PS3, 360 and PC.