Blockbuster collapsed for the first time in January, with the loss of about 2,000 jobs, but was sold to Gordon Brothers Europe in March.
The new owner last night admitted it had been unable to turn around the business as it continues to suffer from poor trading, and is seeking a new buyer.
In a statement Gordon Brothers said it had "striven to turn around the historically loss-making company by restructuring the business, investing significantly in strategic marketing activities and negotiating with the landlords of its retail outlets".
It added: "The company also tried to develop a new digital platform but was unable to broker a licensing deal with Blockbuster UK's parent company in the US.
"Regrettably, the months since the acquisition have also coincided with a period of poor trading performance across both rental and retail sales."
Gordon Brothers said it plans to cut 32 jobs at the chain's Uxbridge headquarters in London, but its remaining 264 stores, which employ about 2,000 staff, will continue to trade while a buyer is sought.
Blockbusters is just one of several high street stores to enter administration this year, including music retailer HMV and photographic suppliers Jessops.
