Blockbuster is understood to be working with restructuring firm KPMG on negotiations with more than 600 landlords as part of cost cutting plans.

The film and DVD rental chain has around 630 shops in the UK – its second-largest market. It has been in talks to reduce store numbers and costs through rent reductions.

The company has come under competition from internet rivals such as Lovefilm.com, leading to questions about whether it needs such a large chain of shops.

The move is being pushed across Blockbuster’s global estate. Last year, Blockbuster said it would close almost 1,000 stores in the US by the end of this year.

In a statement to the Financial Times, Blockbuster confirmed it had been working with KPMG on “lease renegotiation” initiatives such as rent reduction in the UK, but stressed that it was not advising on corporate restructuring.

It said so far it has renegotiated about 1,200 leases across the global operation as part of the “overall expense reduction initiative”.

KPMG is also advising menswear chain Suits You on a company voluntary arrangement.

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