Administrators Moorfields Corporate Recovery has confirmed that 72 of Blockbuster's 264 stores are to close.
As a result 452 of the chain's 2,000 strong workforce are to lose their jobs.
"This has not been an easy decision to make and we acknowledge that, with Christmas on the horizon, this will be extremely upsetting news to a large number of people most of all those affected by the store closures,” Moorfields told Sky News.
"We must reiterate that, as part of our attempts to turnaround the business, today's decision is necessary if parts of Blockbuster are to be saved and a buyer found."
Meanwhile, The Express reports that current owners Gordon Brothers are looking likely to be the only creditor to be reimbursed if the collapse comes to fruition.
This could leave suppliers, landlords and staff out of pocket, with the latter being compensated via the state-funded Redundancy Payment Service (RPS) for insolvent firms.