Sky News reports that the DVD rental chain, which has over 500 shops across the country, has called in Deloitte -- the same firm that is overseeing HMV's administration and that managed Comet's closure last year.
"We are working closely with suppliers and employees to ensure the business has the best possible platform to secure a sale," Deloitte's Lee Manning is quoted as saying.
Over 4,000 jobs are said to be at risk, though Blockbuster will reportedly continue its rental and buying services for now. If you have vouchers or gift cards, Blockbuster plans on honouring them at the moment, apparently, which could help the chain avoid the ire of HMV customers who bought gift cards for Christmas.
Although I'm sure many readers will have fond memories of Blockbuster stomping all over local independent rental shops to become a part of UK life, it's not hard to see why the business has struggled in recent years, with iTunes, Netflix and others offering a cheaper, faster ways to rent and buy movies.
I've contacted Blockbuster UK for confirmation of the news, and we'll update this story and continue to report on the situation as it unfolds. For now let us know whether you use Blockbuster, and whether you'd miss the service if it vanished from the high street, by posting in the comments or on our Facebook wall.