Video and DVD rental company ChoicesUK has announced that it is to go into administration "as soon as possible".
The troubled company had issued a statement in April warning that it expected its financial performance for the 24 weeks to July 28th to be "substantially below market expectations", with the entertainment chain having incurred losses despite cost-cutting measures.
In a further statement today the Peterborough-based firm, which operates over 160 stores across the UK, revealed that its directors had been exploring a possible sale or refinancing of the business in order to secure its future.
ChoicesUK said that its directors had, until recently, been "hopeful" of achieving a successful outcome.
"However, despite extensive negotiations it has not been possible to reach an agreement on terms acceptable to all parties," said the company.
"Therefore the directors have decided that it is in the best interests of the creditors to seek to appoint administrators as soon as possible."
ChoicesUK, which both rents and sells DVDs and videos, employs over 1,650 staff in the UK.
Shares in the company, which is listed on the AIM market, have been suspended from trading.
ChoicesUK, which opened its first retail store in 1986, also runs a mail order operation.
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