Grey Helme Advertising, a Dublin agency that represents clients such as the Abbey and Restaurant Patrick Guilbaud, is winding up its business at the end of August.

News of the closure has caused consternation in the advertising industry. ‘‘This is very sad news,’’ said one senior industry figure. ‘‘It’s unprecedented what has happened. It goes to show what can happen when a local shop is taken over by an international business.”

The company, which became part of the global WPP group three years ago, is understood to have opted for voluntary liquidation and has told all debtors they will be paid in full. The Institute of Advertising Practitioners in Ireland (IAPI) confirmed it had sent out an e-mail last week informing all members about the closure.

‘‘This was a voluntary move by the company,” said Sean McCrave, chief executive of the IAPI.

Philip Sherwood, managing director of Grey Helme, would not comment on details of the closure, saying his priority was dealing with the firm’s staff.

It is understood that the company has about 15 staff. About six people were let go in the past few weeks from its media buying operation, Mediacom, which has already ceased trading. Former director Maureen Carrigan was among those made redundant.

Industry sources said WPP called time on the Irish business, although it had posted billings above €30 million in the last business year.

Accounts for its 2006 business year show a staff total of 37, media billings of €29 million and turnover of €5.4 million. Retained profits that year were €184,455.

Grey Helme has traditionally been strong in arts and entertainment, and also has a good history in the motor industry, with Seat and Chrysler Jeep among its clients. Its current Irish directors are Sherwood, creative director John Carvill and Ciara Gleeson.

Louis McConkey, a long-time director of the company, left in January to pursue other business interests.

Industry sources said that Grey Helme had experienced ‘‘a sharp change in culture’’ since being acquired by WPP. Just two months ago, WPP took the unusual step of setting up a rival agency to Mediacom, Grey Helme’s media unit.

This agency took many of Mediacom’s global clients, including Nokia, Mueller and Wrigleys.