The UK arm of entertainment retailer Blockbuster has entered administration, the company has confirmed.
The chain, which currently employs around 4,000 staff and operates over 500 UK stores, has appointed Deloitte as its administrator.
Deloitte's Lee Manning said Blockbuster faced Increasing competition from internet rivals and the shift to online streaming of movies and games.
"We are working closely with suppliers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors," he said.
"The core of the business is still profitable and we will continue to trade as normal in both retail and rental whilst we seek a buyer for all or parts of the business as a going concern.
"During this time gift cards and credit acquired through Blockbuster's trade-in scheme will be honoured towards the purchase of goods."
Deloitte has told CVG that its administration of Blockbuster is not yet official but imminent.
According to MCV, the retailer had been sitting on significant amounts of stock and unable to source much in the way of new releases.
Earlier this week Deloitte was also appointed administrator for HMV following crisis talks. It is believed that Christmas trading was not sufficient enough for HMV to secure covenants for creditors.