DVD and video games rental firm Blockbuster UK has gone into administration, putting more than 4,000 jobs at risk across the UK.
Deloitte, which is handling the administration, said the collapse was driven by competition from internet firms and digital streaming of movies and games.
The Uxbridge-based business opened its first store in London in 1989 and now trades from 528 outlets employing 4,190 staff.
It has more than 300 workers in Scotland, working in 66 shops.
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.
The collapse comes a day after another music and entertainment retailer, HMV, hit the rocks, with more than 4,000 jobs under threat.
Deloitte is handling both administrations.
More than 8,000 retail jobs have been put at risk during the last two days alone in a bleak week for Britain's high street.
Lee Manning, joint administrator and partner in Deloitte's restructuring services practice, 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."
Deloitte stressed Blockbuster's core business was profitable and they would be looking for a rescue deal for all or part of the business as a going concern.
Blockbuster's US parent went bankrupt in 2011, but was rescued by US pay-TV provider Dish Network in a 320 million US dollar (£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, including by expanding its online rental offering while also launching 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.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article