In this paper, we analyze a multi-stage hard-decision bounded-distance decoding method for multi-level block modulation codes. Each stage of the decoding is performed by a combination of a hard-decision for each received symbol and an algebraic decoding for a component code. Error performance of multi-level block modulation codes is analyzed for a memoryless additive channel based on the multi-stage decoding algorithm presented here. Formulas are derived for the probability of erroneous decoding and that of decoding failure. Then these probabilities are computed for some specific 8-PSK block modulation codes.