Covent Garden facility The Club has entered into insolvency proceedings after being told that one of its major customers is unlikely to be able to pay a£110,000 bill for post-production work.

The client, Gateway Broadcast Services, approved a plan to go into liquidation on Friday, blaming an inability to source further funding because of the “financial and global crisis”.

Gateway supplied programmes - including coverage of the English Premier League - under the GTV banner to African countries and The Club was its main post production provider.

The Club's owners do not expect to be paid and have asked David Rubin & Partners to start insolvency proceedings.

Managing director and co-owner Bill Cullen told Broadcast that, because of The Club's own borrowing restrictions, the loss of the Gateway money meant it would be insolvent if it continued. “We had no option but to appoint an insolvency practitioner immediately,” he said. “It's just too big a hit.”

The Club turns over around £1.6m a year and employs 27 people. As Broadcast went to press it was unclear how many would lose their jobs, but Cullen was hopeful of “finding a way of carrying on”.

Formerly known as Frontline Television, The Club provides finishing, editing and audio services - particularly on-air work - to the BBC, Discovery, Channel 4 and MTV.

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