Razorfish closes UK office

The agency has seen revenues plummet in recent times, and offered voluntary redundancy to its London staff earlier this year in a bid to bring costs down.

Now the doors to its London office have been closed and Kroll Buchler Philips appointed as provisional liquidators. Their full status as liquidators is expected to be confirmed at a creditors meeting to be held on September 12.

Nobody from Razorfish was available to comment. Kroll Buchler Philips said it would be commenting on the situation on Monday.

Its US parent firm has been hit with a massive decline in revenues in recent times - falling $14m alone in the last quarter, and nearly $48m on the same period last year. More than a third of the company's workforce worldwide has been shed, with offices in Helsinki and Milan also having been shut.

Its London offices have already been merged with the Razorfish offices in Amsterdam, with staff at the time being given the chance to take voluntary redundancy. It came on the heels of 43 employees losing their jobs, and represented Razorfish giving its staff the chance to decide whether, in the market conditions, they wanted to stay with the company. And earlier this month the company denied filing for chapter 11 bankruptcy protection.

Razorfish's troubles represent another blow for the under pressure interactive agency market, which has seen jobs, companies, and significantly clients, disappear at a startling rate.