Moorfields Corporate Recovery have been appointed joint administrators of TS Operations Limited, parent company of collapsed DVD rental chain Blockbuster.
Dozens of retail jobs across the West Midlands have been plunged into turmoil with the collapse of the chain for the second time in a year.
Stores across the region, including Shirley, Acocks Green, Harborne, Sutton Coldfield, Willenhall, Wolverhampton and two in West Bromwich, all face an uncertain future.
The Blockbuster collapse comes less than a year after the DVD operation crashed into insolvency in January 2013 following a slump in trade.
Nick O’Reilly of Moorfields Corporate Recovery LLP said: “There are no immediate plans for any stores to be closed – it is business as usual.”
Blockbuster operates one of the UK’s largest chains of film and game rental stores, with 264 stores and approximately 2,000 employees.
A statement from Moorfields Corporate Recovery said: “Gordon Brothers Europe acquired the business and assets of Blockbuster Entertainment Ltd and Blockbuster GB Ltd in March 2013.
''Since then the company has striven to turnaround the historically loss-making company by restructuring the business, investing significantly in strategic marketing activities and negotiating with the landlords of its retail outlets
“The company also tried to develop a new digital platform but was unable to broker a licensing deal in time. Regrettably, the months since the acquisition have also coincided with a period of poor trading performance across both rental and retail sales.
“Whist the company is in administration, every effort will be made to ensure retail trade continues as normal. We encourage customers to visit stores and continue to rent and buy as usual.”
Simon Thomas, Joint Administrator said: “This is obviously a difficult and upsetting time for everyone involved at Blockbuster, in particular employees who have endured a stressful period since January this year.
“We appreciate that staff and customers will want a speedy resolution, however, we must ask people to be patient over the coming weeks.
“We are pleased to say that there are parties who are interested in parts of the business. Our focus will be to secure a future for as much of the business as possible as well as trying to save jobs before Christmas.”