The agency, which had offices in Jersey and Guernsey, employed eight people, led by MDs Jim Delbridge, Andrew Carey and Andy Ozouf.
Around 30 people lost their jobs when its marketing and advertising parent Wallce Baranby was put into voluntary liquidation. The owners of Wallace Arnold, UK-based Ekay PLC took the decision to close the firm, saying that ‘Wallace Barnaby was not expected to reach profitability in the forthcoming financial year'.
The decision was said to be a result of the credit crunch, with a downturn in client spending hitting profits.
Directors of Wallace Barnaby have been quoted in the local press as being unhappy with Ekay's decision, claiming that the parent firm had ‘washed its hands' of the agency and that it could have returned to profitability.
White Knight PR had worked for clients such as St John's Ambulance, Close Private Bank and Guernsey Customs.