The DVD and computer games rental chain Blockbuster is poised to enter administration for the second time this year, placing 2,000 jobs at risk in the UK.

It was snapped up in March by private equity group Gordon Brothers Europe after its initial collapse in January but the new owners said it had continued to suffer from poor trading.

Gordon Brothers planned to cut 32 jobs at the chain's headquarters in London while its 264 stores were at risk, the company said, unless a buyer could be found.

It cut Blockbuster's store portfolio and staff numbers in half to prioritise prime locations and new releases but said its turnaround attempts for the historically loss-making company coincided with low demand across rental and retail sales.

It said stores would remain open for now but some may need to close if a buyer cannot be found. Blockbuster has been hit hard by intense competition from supermarkets, as well as the shift from physical rental and sales to online games, music and films.

Gordon Brothers said today it had tried to turn around the chain by restructuring, investing in marketing and negotiating new deals with landlords to bring down rent costs.

But it failed to broker a licensing deal with US company Blockbuster LCC, which owns the brand, for a new digital platform.

It said efforts will now focus on "giving the company a chance of future survival through a reduced and different business model in the hope that a buyer will be found."

Frank Morton, chief executive of Gordon Brothers Europe, said "Since the acquisition, we have worked extremely hard to reignite the Blockbuster brand, make our investment work and put the business on a viable footing. Despite our best efforts, we regret that we are now forced to make some redundancies and would like to thank any affected employees for their support during the last six months" he added.