Scotland’s leading animation and visual effects studio has collapsed with more than 160 job losses.
Axis Studios created content for the BBC, Netflix and video game giants Blizzard and Activision from their base in the Finneston area of Glasgow.
However the company is said to have suffered “severe cash flow problems” due to a combination of a decline in the number of their projects and rising labour costs.
Administrators Interpath Advisory confirmed 162 members of staff have lost their jobs immediately, with four people being retained to help wind up the business, which formed in 2000.
The business employed people around the world to make content for TV, film, video games and theme parks – including work on brands such as Harry Potter, Doctor Who, Luther and Magic the Gathering.
It was a recipient of several awards for its work including a Royal Television Society award and an Emmy.
Administrators said the company’s work was in high demand during the Covid-19 pandemic – when the need for animation and visual effects projects “skyrocketed” – but that customer projects have since declined.
Alistair McAlinden, the head of Interpath Advisory in Scotland and joint administrator, said it was a “great shame to see a creative business in Scotland close its doors”.
He added: “Axis has more recently been impacted by a decline in customer projects, as well as increases in labour costs which have resulted in severe cash flow problems.
“The directors worked tirelessly to explore alternative solutions, but ultimately had to take the difficult decision to seek the appointment of administrators.”
The business was founded in 2000 by Richard Scott, in partnership with Dana Dorian, Stuart Aitken and Graham McKenna. Companies House records list Mr Scott as the company’s sole director.
Axis recently worked on a high-profile campaign for the mobile game Clash of Clans, turning Manchester City footballer Erling Haaland into a character for it.
Production on all projects has now ceased, with the joint administrators now looking for operators to continue with work that was already live.
Geoff Jacobs, joint administrator, added: “Our priority is to give employees support in the first instance. We would encourage any party with an interest in Axis’ live projects to contact us immediately.”