Blockbuster, the video and games rental company, has become the latest high street name to collapse into administration.
The rising popularity of internet film rental services like iTunes and Lovefilm have taken their toll on Blockbuster's 528 high street video rental stores, and the company is now loss-making.
The chain's collapse, which puts 4,190 jobs at risk, follows that of music retailer HMV earlier this week and will be seen as yet another sign of the devastating impact of the internet on bricks and mortar retailers.
Blockbuster is owned by the satellite broadcaster Dish Network, which was reported to have put the loss making UK business up for sale last year. It is understood Blockbuster's US and Danish businesses continue to trade as normal.
The company announced on Wednesday it had appointed Deloitte as administrator of its UK arm, which will continue to trade as it seeks a buyer for all or parts of the business.
After consumer anger over HMV's decision not let customers redeem record tokens sold over Christmas, Deloitte rushed out a statement promising to honour gift cards and credit acquired through Blockbuster's trade in scheme, where movies, games and consoles can be exchanged for credit and cash.
"In recent years Blockbuster has faced increased competition from internet based providers along with the shift to digital streaming of movies and games," said joint administrator Lee Manning.
"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."
Mods, I didn't really know what to tag this under.