Blockbuster is to make 760 of its 4,190 employees redundant, its administrator confirmed today.
Thirty-one stores have already been put on notice of closure, and a number of closing-down sales announced.
Blockbuster's administration came just a day after music and entertainment chain HMV went under, following dismal Christmas sales.
Customers will be told if their local Blockbuster store is closing so they can return their rentals beforehand.
Deloitte, appointed as administrators on Wednesday, said stores will remain open for business as usual until this time. Lee Manning, joint administrator said:
The store closure plan is an inevitable consequence of having to restructure the Company to a profitable core which is capable of being sold.
We would like to thank the Company’s employees for their support and professionalism during this difficult time. We are also grateful to the customers for their continued support.
Administrators to Blockbuster have said they plan to close 129 stores over the coming weeks, in addition to 31 which had already been put on notice of closure.
During this time there will be a number of closing down promotions across the stores.
More than 4,000 jobs are at risk after DVD rental chain Blockbuster called in the administrators yesterday.
Retail Expert Kate Hardcastle told ITV Daybreak that the problem lies with the 'evolution of the high street'.
She said it had created a gap between online retailers and 'lazy retail'.
Our Business Editor Laura Kuenssberg asked her Twitter followers whether they still used Blockbuster. Here is a selection of tweets from people who still use the store:
@itvlaurak I still use Blockbuster because my internet is too unreliable for streaming films, and the staff are always enthusiastic.
@itvlaurak I use it but only to buy movies an boxed sets. Never rented anyway, but always use virgin on demand if fancy a rental.
– Julie Palmer, Partner at business recovery specialist, Begbies Traynor
With 140 UK retailers already on our ‘critical’ watchlist, and our recent research highlighting over 13,700 retailers experiencing 'significant' distress in the 11 weeks to 17 December 2012, a 35% increase from the third quarter, news of the administration of the third major retailer in less than a week will create a serious new year hangover for landlords across the country and employment in the sector.
It can also only serve to damage consumer confidence in the retail sector further in the months ahead.
Our Business Editor Laura Kuenssberg asked her Twitter followers whether they still used Blockbuster. Here is a selection of tweets from people who stopped using the store:
@itvlaurak poor selection in store if not after new releases, often scratched, shops full of kids and smell and over priced chocolate!
@itvlaurak went in recently. It was like being transported to 1994. Also found their add-on sales policy annoying. Just want a movie not pop
@itvlaurak DVds by post so much easier, esp when you have small kids, also our local BB shop focussed more & more on games,
It is very sad to see another big name on the High Street in severe difficulty - this time Blockbuster. As I said yesterday, we need a proper industrial strategy to promote multichannel retailing, combining online trade with vibrant High Streets.
This has been a grim week for the High Street but those who write off our High Streets are defeatist and mistaken.
– Chuka Umunna MP, Shadow Business Secretary
The key is for government, business and communities to work together in partnership to change and adapt our High Streets for this new era. When thousands of jobs are put at risk, it is not for us to think what we can't do, but to ask what we can do to help resolve the situation.
Our Business Editor Laura Kuenssberg asked her Twitter followers whether they still used Blockbuster and what they thought of the store. Here is a selection of the tweets she received:
@itvlaurak Blockbuster became irrelevant by being too slow to adapt to the shift towards unlimited rental packages and online streaming
@itvlaurak used to love Blockbuster (& worked then in late 80s early 90s) use Netflix & Lovefilm now; Shops scruffy & not value for money.