Blockbuster UK is to enter administration, with 4,190 jobs at risk.
It's the second major blow to the UK entertainment industry after HMV appointed administrators yesterday.
Sky News reports that Deloitte's Lee Manning has been appointed joint administrator and blames Blockbuster's retail woes on the shift to streaming services and Internet rivals.
"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," said Manning in a statement.
"During this time gift cards and credit acquired through Blockbuster’s trade-in scheme will be honoured towards the purchase of goods."
Blockbuster currently has 528 stores in the UK.