Blockbuster has called in the administrators, just days after competitor HMV was placed into administration, putting more jobs at risk in Greater Manchester.
The DVD rental firm has suffered from increased competition from internet-based providers and the switch to digital streaming websites such as Love Film.
Staff at nine Manchester DVD rental stores, in Worsley, Wythenshawe, Trafford Park, Chorlton-Cum-Hardy, Fallowfield, Radcliffe, Wilmslow Park, Failsworth and Didsbury, are facing an uneasy future as they now find themselves under administrators Deloitte.
Despite the difficult situation, Lee Manning, of Deloitte’s Restructuring Services practice, confirmed stores will remain open nationwide and customer’s gift cards and credit will still be valid.
He said: “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.
“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.”
It is believed the growing online market, both in terms of streaming and renting films, is the cause of Britain’s most recent high street casualty.
Blockbuster has now become the third major UK chain – after music retailer HMV and camera-specialists Jessops – to enter administration in 2013 alone.
The firm – founded in America in 1985 – employs 4,190 people across 528 stores in the UK.
Unlike HMV, Blockbuster will continue to honour vouchers and continue to trade like normal.
“During this time gift cards and credit acquired through Blockbuster’s trade-in scheme will be honoured towards the purchase of goods,” added Mr Manning.