Post house Resolution has become the sector’s latest casualty, going into administration following a period of making a loss.

Administrators Lee Manning and Nick Edwards are now running the D’Arblay Street-based business for Deloitte in the short term, with the aim of completing existing projects and attempting to sell the business as a going concern.

Non-Linear Editing, trading as Resolution, comprised 30 suites when it went into administration. It had a turnover of around£6.3m last year.

Managing director Mike Saunders said the company had been downsizing in recent times to cope with a downturn in work, but that “ploughing on” had become impossible.

He said: “There has clearly been a downturn in commissions this year and sadly the business model of editing facilities facing high overheads and falling rates meant the business, in its existing structure, was not viable.

“Cheaper editing equipment costs have really hit home with many production companies going DIY.”

Resolution currently employs 40 staff, down from 110 three years ago. It also sold its Old Street premises in spring this year in a bid to reduce costs.

Saunders said he expected the downturn to claim other casualties in the post sector, particularly businesses that were “trying to turn in a profit for investors”.

He said: “There just doesn’t seem to be enough work out there. I know talented people who have barely worked this year.”

Saunders added that Resolution’s premises might be attractive to other post houses and that he was hopeful the administrator could find a buyer.

Resolution pioneered the work-flow of event-location editing on shows such as Big Brother, Fame Academy, The Games and The Match. It was also one of the first companies to adopt the one-stop-shop editing facility and post-produced ground-breaking formats such as Pet Rescue, Pop Stars, Ramsay’s Boiling Point, Wife Swap and Top Gear.

Saunders plus key Resolution staff Brett Evans and Mark Openshaw will be working on Channel 4’s Celebrity Big Brother replacement, Celebrity Hijack, as part of a yet-to-be-named new company.

The failure of Resolution follows Frontier Post being wound down in October. It also cited high overheads and falling rates within the broadcast market.