Despite receiving a $7million (B7.84m) cash injection from investors last summer that was expected to see the company through to profitability in the second quarter of next year, Sportal said it had struggled with "significantly deteriorating market conditions".
"To this end, the board of directors of Sportal, have decided to further re-examine all options for the future of the Sportal business," the company said in a statement.
"It is an exceedingly challenging time for all. Sportal believes it is right to evaluate its position fully and, accordingly, all UK employees have been informed that the company is seeking alternative solutions for its business model. At this point in time no redundancies have been announced.
"Sportal will further consult with employees whilst continuing to trade normally with both our partners and our clients, and continue to operate the Sportal network of websites.
"Sportal has already entered discussions with third parties, details of which are not being disclosed at this time."
Sportal's situation affects the company's European operations only and does not affect Sportal Asia, Sportal Australia or Sportal South Africa, which are separate companies.
The summer funding in Sportal was raised from a group of existing shareholders, including founder Rob Hersov (pictured), Europatweb, GRP, Andell Limited and Whitney and Co, as well as various private individuals and new investor, Dawnay Day Lander.
The completion of this funding coincided with a restructuring of the business, which saw current chief operating officer, Neil MacDonald stepping up to become Sportal’s new CEO. Rob Hersov, Sportal’s founder and former CEO became chairman of the restructured group.
