VIDEO: Blockbuster calls in administrators

The company, with a store in East Street, Horsham, has 528 stores employing 4,190 staff in the UK.

It follows the demise of DVD and music chain HMV, which went into administration on Monday.

Deloitte, the accountancy firm that will now take over the day-to-day running of the firm, said Blockbuster had been affected by competition from internet-based film services.

The firm will keep trading while the administrators try to find a buyer.

Lee Manning from Deloitte’s Restructuring Services practice: “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,” 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.”

The first Blockbuster store in the UK opened in 1989. In the past few years it has faced increasing competition from online-only rental firms who post DVDs to subscribers and, more recently, from streaming services which allow users to download films and TV series.