WeeWorld, based in Glasgow, lets users create and design online characters, or "WeeMees", and join in a social network where they can buy virtual goods for their characters and chat with other users.
Aimed at teenagers, the free app has been downloaded by tens of millions of people since it was launched in 2006.
However, the company has cashflow problems and Tom MacLennan and Iain Fraser of FRP Advisory have been appointed joint provisional liquidators.
Of the 30 staff at the company's office in Blythswood Square, 19 have been made redundant and 11 have been retained while a purchaser is sought, the liquidators said.
Mr MacLennan said: "WeeWorld is an entertainment business with a large and loyal following in the youth market.
"This is an outstanding opportunity to acquire a unique brand with a wealth of specialist intellectual property that has benefited from substantial investment.
"The IP, brand and assets of WeeWorld will be of interest to the games and apps sector, or to a business looking to acquire a unique portfolio of knowledge and expertise in the entertainment market.
"We would urge interested parties to make contact with us as soon as possible."