More doom and gloom has been heaped on the high street after home entertainment chain Blockbuster announced it had gone into administration.

Around 60 Blockbuster DVD and video games rental stores in Scotland are now under threat as a result of the move which follows the collapse of Comet, Jessops and HMV in recent weeks.

The rental chain, one of the most familiar names on the high street, collapsed with administrators blaming the growth of competitors on the internet who are better adapted to the digital age.

The Uxbridge-based business trades from 528 outlets, and employs 4190 people, including 300 in Scotland.

Blockbuster will continue to accept gift cards and credit bought through its trade-in scheme for second-hand movies and games, as well as operating its loyalty scheme.

But uncertainty surrounds the firm's future although administrators say the DVD rental side remains profitable and are hopeful it can be saved.

Lee Manning, joint administrator and partner in Deloitte's restructuring services practice, said they would be looking for a rescue deal. He said: "The core of the business is still profitable and we will continue to trade as normal in both retail and rental while 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."

Blockbuster's US parent went bankrupt in 2011, but was rescued by US pay-TV provider Dish Network in a £200 million deal, which saved hundreds of stores from closing and prevented tens of thousands of US job losses.

The UK group has sought to branch out in recent years in an attempt to revive business. This included the expansion of its online rental offering and the launch of a trade-in service for pre-owned titles, allowing members to swap second-hand games and movies for cash or credit on their membership accounts.

The first Blockbuster store in the UK opened in south London in 1989, renting out videos. It upgraded to a DVD rental operation in 2002.

The company's website, blockbuster.co.uk, claims to send out more discs per customer than other online DVD rental services in the UK, but has lost customers to purely internet-based rivals such as Lovefilm and Netflix, who not only rent titles but stream videos directly to people's TVs and PCs.

Blockbuster UK has struggled in recent years and closed more than 100 outlets in a bid to keep stave off collapse. But it has become a victim of changing times on the high street and shifting consumer trends.

Professor Ajay Bhalla, of Cass Business School, said: "The company, like HMV, failed to transform its business model early enough. When it did, it found a fundamentally altered competitive landscape where the platform model had destroyed the traditional retail one.

"Firms like Blockbuster failed to face up to the enormity of the change and altered their business model on the fringes, such as selling second-hand products, rather than coming up with an innovative offering. It is shocking that the board and executive management failed to make bold choices."