Tinderbox managing director Rebecca Pinto was unavailable for comment but Nu-Media managing director Jason Thomson said the decision to close was based on a 'change in direction' for both Tinderbox and Nu-Media.
He said: 'Nu-Media has decided to concentrate on the internet and DVD market while the creative side at Tinderbox is looking at setting up in design production. The facilities market is shifting. A lot of creative talent is moving over to the production design field where they are not kit-dependent.'
However, Tinderbox director Marcus Lyall, who helped launch the facility, said the outfit had closed because 'it had not done well enough'.
Based in Frith Street, Tinderbox was launched in February 1997 offering three Media 100 suites, including the latest Finish system, as well as After Effects, Blue Ice and Commotion. A 3D department added Alias Wavefront's Maya and 3D Studio Max.
While the facility is understood to have done well during its first year, a lack of major projects - apart from its recent title sequence for Channel 4 comedy series Smack the Pony - is understood to be one of the reasons behind the closure.