Leyne, Strauss-Kahn & Partners (LSK) was set up last year by French-Israeli entrepreneur Thierry Leyne, who died on 23 October in an apparent suicide.
Three days earlier the former head of the International Monetary Fund, Strauss-Kahn, gave up his chairmanship of the firm.
The board of LSK published a statement yesterday, detailing “additional commitments” that had been discovered at the firm.
“LSK discovered additional commitments within the group, which they were unaware of and which aggravate its delicate financial situation,” the board said.
“The board found that the new information called into question the continuation of the company, whose credit is irreparably compromised”, adding it had “decided to proceed and make a declaration of insolvency” to the Luxembourg courts.