The shock decision was taken after the co-founder and managing director Douglas Alexander unexpectedly left the company, which had been based in London and Edinburgh.

Completing London's bid book, the vital document which outlined the technical aspects of its candidature, was one of the last projects the firm undertook.

The company had built its reputation in the highly competitive world of bidding during London's successful campaign to host the 2012 Olympics and Paralympics when it produced the bid book.

Navyblue had also recently been appointed by Hambantota to devise and create the communications strategy and bid identity for its campaign to host the 2018 Commonwealth Games.

A statement from the company confirmed thaty they had closed.

"Despite continued support from our bankers to address current economic and trading pressures, our recent 'internal' problems have proved too difficult to overcome," the statement said. 

"Although we have made significant personal commitments and investment recently, on the advice of our accountants, we have regretfully decided that we must put our business into voluntary liquidation."

A spokeswoman for UK Athletics confirmed that the closure would not affect them in the build-up to the final vote by the International Association of Athletics Federations (IAAF) at its Council meeting in Monte Carlo on November 11, where London will be up against its only rival, Doha.

"All of our work had been completed by Navyblue prior to them going into liquidation and any additional bits that we need doing for Monaco on the book will be done by another company," she told insidethegames.

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