Blockbusters goes into administration

The company will continue trading while Deloitte, which is now running the business, tries to find a buyer.

The chain has 528 stores employing 4,190 staff, but has struggled with competition from online movie services.

Joint administrator Lee Manning said: “In recent years Blockbuster has faced increased competition from internet-based providers along with the shift to digital 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.

“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.”