The company entered administration for a second time last month, and 72 stores have already been earmarked for closure.
Blockbuster UK operations manager Dave Potter informed store managers of the news on Wednesday morning (November 20), according to McV.
An insider at one shop has claimed that all the company's retail outlets could be closed before Christmas, although Blockbuster and administrators Moorfields are yet to issue comment.
Having originally said that it was unable to honour Xbox One and PS4 pre-orders, Blockbuster recently gave customers the chance to cancel or transfer orders elsewhere.
Around 2,000 people are employed by Blockbuster in the UK.