DVD and games rental firm Blockbuster is to close 129 of its 528 stores in Britain in the coming weeks and make 760 of its 4,190 employees redundant.
Thirty-one stores have already been put on notice of closure with a number of closing-down promotions announced.
Administrator Deloitte said the closures were a consequence of having to “restructure the company to a profitable core which is capable of being sold”.
The firm's trading woes were blamed on competition from internet firms and digital streaming of movies and games.
Blockbuster had struggled to adapt to the changing market and rivalry from internet retailers including Netflix, Amazon's LoveFilm and iTunes, which now offers a movie rental service.
The impact of the internet on Britain's high street had already been laid bare with the demise of camera chain Jessops and electricals group Comet, which also cited competition from online players as a major reason for their downfall.
Blockbuster's administration came just a day after music and entertainment chain HMV went under, following dismal Christmas sales.