Film rental chain Blockbuster and shoe shop Barratts have announced that have been placed administration ahead of the crucial holiday shopping season.

The many believe that hundreds of jobs at the retail chains might be at risk as they go under administration. Blockbuster is among a host of popular high-street brands to go under administration while Barratts is going under administration for the third time in just five years. The film rental chain saw only a brief revival under the leadership of Gordon Brothers withers while Barratts was not able to attract the necessary investment.

The collapse in the retail sector shows vulnerabilities in the economy as the as the inflation has risen faster than some of the low wages, leaving less cash with the customers in the UK. HMV, Jessops camera shops and bed specialist Dreams have also failed this year, going into administration and jobs were cut in all these firms.

Barratts and Blockbuster will have to struggle to survive in the market and will be reshaped and reorganised by the administration. Experts have said that Barratts brand and its products were not strong enough to compete with clothing retailers such as Primark, New Look and the supermarkets while Blockbuster is in an outdated industry as people prefer downloads and TV subscription services.