Administrators have confirmed that Blockbuster has been sold to Gordon Brothers Europe, a restructuring firm, which could mean 264 stores remain open, saving around 2,000 jobs.
Blockbuster went into administration after sales were hit by online streaming services and rival post rental companies. Since then, around 200 of its 528 stores have been closed.
Joint administrator Lee Manning said: "Having identified a profitable core portfolio of stores we are pleased to have achieved this sale for creditors.
"Together with the previously announced store sales, more than half of the original estate has been secured for ongoing use.
"This transaction provides Blockbuster with a future in the UK and we owe a special vote of thanks to all the company's employees, suppliers and customers for helping us rescue the business."
The sale of the 264 stores to Gordon Brothers Europe is for an undisclosed sum.