The company called in insolvency experts Begbies Traynor on May 26 after seeing debts mount following the loss of its largest client in April.
The identity of the client lost was not revealed by Chris Herron, administrator at Begbies Traynor, who said there was only one prospective buyer for the business and it did not make an offer.
Yellow Submarine was hired by Channel 4 last year to handle the promotional account for 'Big Brother 6'. With other clients including the COI, Hoegaarden and Pernod Ricard, the agency had 25 full-time staff at its peak.
"Sadly the business has been closed and all members of staff have been laid off. Our role as administrators is now to secure the best outcome for creditors, which will include selling assets and recovering the outstanding monies owed for work which has already been invoiced," Herron said.
The Epsom-based agency, which bears the name The Yellow Submarine Marketing Exploration, was founded in 1992 by Kevin Stott as Cursitor. Stott was managing director and there were four other directors.
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