The 80 employees of the Daily Sport and Sunday Sport have been made redundant as the new administrator, BDO, admits that the business faces a tough time finding buyers or investors.

Sport Media Group, which bought the titles for £50m in December 2007, ceased trading on Friday and on Monday appointed BDO as administrators.

In a statement today BDO said that "regrettably" all 80 employees working on the two national titles – as well as two "adult content" magazines – were made redundant by SMG when it ceased trading.

BDO said that it is aiming to seek a buyer for SMG's assets – which also include a digital content operation and telecoms provider that are continuing to trade as normal outside of the administration process – but admitted that the markets have already shown "limited interest" in the businesses.

"The companies have been exploring restructuring and sale options and, regrettably, the cash flow problems experienced as a result of historic trading difficulties, coupled with limited interest from third-party investors or an acquirer for the businesses, have resulted in the companies ceasing to trade," said Dermot Power, one of two BDO business restructuring partners working on the administration process. "The joint administrators are taking all necessary steps to maximise recoveries for the benefit of creditors and would welcome early contact with any interested parties."

SMG ceased trading on Friday after admitting that an "insufficient recovery" since poor sales in December had left it cash-strapped and "uncertain of support" from its bankers.

If no buyer is found, it will be the first closure of a UK national newspaper since News International axed midmarket tabloid Today in November 1995.

SMG, which in 2009 was saved from going out of business by former proprietor and West Ham co-owner David Sullivan, had looked like it might have survived the downturn after last month forecasting earnings to be "in excess" of £1m for the year and securing funding until March 2013.

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