Citing pressure on prices and margins, Ed Sayers, Godman's managing director, said the company would wind down over the next two months while it completes its current slate of projects. It is trading profitably and will not leave any debts.
Sayers said: "While I am proud of what we have achieved, I don't feel confident about continuing to work in the same way, given the industry climate. For all of us to succeed, a different model needs to be applied."
Godman's roster includes Albert, Barney Cokeliss, Ben Sedley, HAM, Jan Gleie, Simon Stock and Type2error. Recent commercials produced at the company include ads for Morrisons through BDH\TBWA and Peugeot through Euro RSCG.
Godman was founded in 1996 by Jo Godman and the director Vaughan Arnell.
Godman left the company in 2002, handing over management to the brothers Ed and Dan Sayers. Arnell left earlier to direct with the now-defunct Propaganda Films.