BLOCKBUSTER, which has four Isle of Wight stores, has gone into administration this afternoon (Wednesday).
The entertainment rental business had already planned to close its Cowes store, however it is understood staff had been told efforts would be made to relocate them.
The company has three other Isle of Wight stores, in Shanklin, Newport and Ryde.
Administrators Deloitte have said the company would continue to trade as normal while efforts were made to sell all, or parts of it, as a going concern and preserve jobs.
The company has said gift cards and store credit would continue to be honoured.
It was the latest blow to the Isle of Wight economy.
Camera store Jessops confirmed last week it was closing its stores, including the Isle of Wight branch, where there were six job losses.
Clothing firm Artigiano announced the closure of its Cowes distribution centre, putting up to 35 jobs at risk, and there was uncertainty this week about the future of HMV after it went into administration.
That came on top of union warnings that the closure of Camp Hill prison could lead to 400 job losses.