The Dublin-based post-production studio Windmill Lane Pictures has announced that it is to cease trading with immediate effect.
The company employs around 30 people.
In a statement, the board of directors said that despite their best efforts to sustain operations, the business had become insolvent and was no longer viable in its current form.
The board said in a statement: "The global film and post-production industry has faced significant headwinds in recent years, including increasing cost pressures, rapid technological changes, and the ongoing challenges of operating in a competitive international market.
"More recently, the extended writers' and actors strike in the United States has caused a severe disruption to production pipelines worldwide, creating a knock-on effect that has impacted businesses across the film ecosystem, including ours.
"In addition to these global pressures, challenges on the domestic front have further compounded the difficulties faced by the business - the erosion of international competitiveness of the Section 481 VFX film tax credit has made Ireland a less attractive location for this type of work."
The company added that it had explored every available avenue, including attempts to secure additional capital and restructure the business, but that these efforts were ultimately unsuccessful.
"We are now committed to managing this transition responsibly and supporting all affected stakeholders," the board added.
Windmill Lane Pictures is a separate company to Windmill Lane Recording Studios which continues to operate as normal.
The businesses were split 35 years ago.
Windmill Lane Recording Studios said in a statement that it was very sorry to hear of the closure, and that its thoughts were with the management and staff at the company.
