Following the revelation last week that The Sanctuary was making 16 people redundant, the management of the post production group has released its remaining sixty-five staff and appointed administrators to run the company.

The company said that because of the current state of the financial market it has been unable to raise credit and it could not find a way to counteract falling post production rates, while overheads have remained high.

Joint managing director Daniel Stracey said: “We were waiting on a decision from the bank regarding financing, and have just received this. It was negative. We had no other choice left.”

He added: “We will handle the process as professionally as possible by placing as many staff as we can with other facilities. We are also looking to ensure that our client's jobs are completed to a high standard by placing them with other facilities too.”

As a medium-sized company The Sanctuary was particularly vulnerable at a time when market demand has polarised between boutique-type services and large one-stop-shop offerings.

Commissioning has been particularly slow in recent months, compounding The Sanctuary's problems.

A director of a Soho facility, who asked to remain anonymous, said: “This is a very sad time, and the industry is going through massive changes. Many of us were guilty of cutting rates, and ultimately the practice combined with the economic climate has made the market very difficult. The demise of companies like The Sanctuary is the almost inevitable outcome. ”

This is the most recent in a spate of medium-sized companies that have met the same fate. These include M2, Resolution and Oasis.

Sanctuary Group credits include full post on Raw Cut TV's 6 x 46 min series 'The Interceptors' for Five (pictured).