The agency had been struggling since losing its flagship £40 million DFS account, which accounted for the lion's share of its billings, to the Sheffield-based agency Uber in July 2006.
Its remaining clients included the Blackpool Marketing Consortium, Johnston Paint and Hotel Focus.
Before losing DFS, the agency was at 29 in Campaign's Top 100 league table, with billings of £48 million.
John Longworth, Mike Phillipson, and the creative directors, Rick Ward and Pete Camponi, launched the agency in 2002.
However, Longworth is the only founding partner remaining at the agency.
Phillipson left the fold in July 2005 to join Propaganda, following a disagreement about the future direction of the agency. Two months later, Fox's Biscuits moved its £5 million account out of PWLC into Phillipson's new agency.
In November of the same year, Propaganda also stole the £2 million Car People account from PWLC.
Ward and Camponi then quit the business in March 2006, in the middle of the DFS pitch. The pair went freelance while looking for directing assignments.
Longworth declined to comment.