Administrator Deloitte is pushing forward with plans to reduce the business's store count to 368 and cut its workforce by around 30%, according to MCV.
The movie and game rental chain already planned to close around 160 outlets pre-administration, but went bust before the cost-cutting measures could be implemented.
"Having reviewed the portfolio with management, the store closure plan is an inevitable consequence of having to restructure the company to a profitable core which is capable of being sold," said joint administrator Lee Manning.
"We would like to thank the company's employees for their support and professionalism during this difficult time. We are also grateful to the customers for their continued support."
Deloitte said that the stores will not shut immediately, with closing down sales likely to be announced to shift remaining stock.
The firm also said that it continues to assess the profitability of Blockbuster, but admitted that "further closures" could be announced in the near future.
An Employee Assistance Programme to help affected staff find new jobs has been launched. Employees should contact the helpline on 0845 302 2547 for further details.