As with HMV, Deloitte have been appointed as joint administrators.
More than 4,000 jobs are at risk at Blockbuster, which has 528 shops in the UK.
Lee Manning, Matthew David Smith and Neville Kahn, partners at Deloitte, will head the administration team.
Kahn worked on Comet late last year when the electrical store lost all outlets and staff, and was also appointed administrator at Woolworths, which lost over 25, 000 staff and suffered the closure of all stores in 2009.
Manning said, “In recent years Blockbuster has faced increased competition from internet-based providers along with the shift to digital streaming of movies and games."
“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," he said in a statement.
"The core of the business is still profitable and we will continue to trade as normal in both retail and rental whilst we seek a buyer for all or parts of the business as a going concern.
"During this time gift cards and credit acquired through Blockbuster’s trade-in scheme will be honoured towards the purchase of goods."
The news comes following the loss of 1,400 jobs last week after camera store Jessops folded and Comet closing late last year.