Julia Reed, the managing director of Harry Nash, commented that the loss of four of its directors over 18 months, including Frederik Bond, who signed to MJZ in May 2002, had placed a strain on the company.
"It's a tough industry at the moment and it's sod's law this has all come at once," she said. "But those directors wanted different things out of their careers and you can't stop people doing their own thing."
Reed commented that the past two years had been "increasingly strained" in the US and the UK. She added that there had been "a proliferation of directors and a reduction of demand".
Regarding the individual futures of directors, she said: "Many of them are undecided and some are waiting to see what I will do next."
Reed added that she wanted to make the company's closure "as painless as possible".
Harry Nash's last signings were the brothers Tom and Charles Guard from Battlecruiser in April.
The company was named BTAA's Production Company of the Year in 2001 for Bond's work for Skoda and Monster.com and Ledwidge's work for Nike.
Ledwidge and Austen Humphries, Harry Nash's sales representative, will go into business with the producer Sally Humphries.
Ledwidge said: "Sally and I have a lot of experience and thought about doing our own thing. We are talking to a few directors and want to make a couple of signings in the next few months, although we are not in a hurry as we want the right people on board."