Telecine manufacturer Cintel International is conducting a review of the business that could see it put into administration.
Cintel chairman Peter Giles told Broadcast that the level of demand for film scanning and imaging equipment was “not sustainable”.
He said: “In line with most companies in the film equipment business we are seeing the impact of secular decline in the market.
“In the capital goods business, if you are not producing the next generation of product then it is difficult to sell enough equipment. In that respect we are no different to others.”
Giles said industry speculation that Cintel was already in receivership or administration was “wrong and certainly premature,” but he said it was a possible outcome for the company.
“I wouldn’t go so far as to say [administration] is a likely outcome; there is a continuing underlying business which we want to protect and sustain in some way.
Cintel said it had received “expressions of interest” in the business from a number of parties.
“I think it is probable that there will be continuing business activity which will provide on-going support for Cintel’s large and established installed base of products,” Giles said, adding that he expected to reach a conclusion about the future of the business in the next couple of weeks.
Cintel, which has its headquarters in Hertfordshire, manufactures the diTTo evolution film scanner and the imageMill processing system.
In 2000, Giles and Paul Biggs led an £8m management buyout of the company after it went into receivership earlier in the year.