Talks to save mobile phone maker BenQ Mobile appear to have failed after no investors came forward to rescue the firm before an end-of-2006 deadline.
BenQ Mobile staff protested when the firm went into insolvency
The loss-making firm, based in Germany, filed for insolvency in September after Taiwanese parent BenQ said it would pull its financial support.
BenQ Mobile is now set to enter formal insolvency proceedings this week, which is likely to lead to its break up.
The business was formerly owned by German conglomerate Siemens.
A number of investors were said to have held talks to buy the whole of BenQ Mobile, and discussions are thought to have continued as late as Friday before breaking down.
Some of BenQ Mobile's 3,000 staff could still keep their jobs if investors are found to take on parts of the business.
Siemens itself has rehired about 80 BenQ Mobile workers.
BenQ bought Siemen's mobile phone arm in the summer of 2005, and despite investing 840m euros ($1bn; £570m) in BenQ Mobile, failed to turn the business around.
BenQ Mobile's products are labelled BenQ-Siemens.
Its German workforce held protests when the insolvency move was first announced in September.
Once a business becomes insolvent, investors can bid for its most attractive assets, and do not have to take on responsibility for the whole workforce.