The UK arm of the US-based home movie and video game rental services currently has 528 outlets in the country and the latest move puts 4,000 jobs at risk.
Deloitte has the mandate to now secure a buyer for all or parts of the business.
Blockbuster UK has been adversely affected by the competition from online retailers and tough economic climate in country, leading to faltering sales and profit margins.
The loss-making chain said that the intention, therefore, is to continue to trade the business whilst all available options are explored.
Deloitte administrator Lee Manning told BBC that the core of the business remains profitable and that the company will continue to trade as normal in both retail and rental spheres.
"We are working closely with [Blockbuster UK’s] 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.
"During this time gift cards and credit acquired through Blockbuster’s trade-in scheme will be honoured towards the purchase of goods," elaborated Manning.
Blockbuster announcement follows the recent collapse of HMV and Jessop and adds to the already somber mood on the British high street.