Discovery was M Bold & Friends' foundation client - an account involving trade and consumer advertising across Asia for the Discovery, Animal Planet as well as Discovery Travel & Adventure regional pay-television channels.
Lesley Anne Campbell, Discovery Networks senior vice-president marketing and communications, said: "We had no idea that M Bold & Friends' financial difficulties were so severe."
She said rumours started circulating a few weeks ago that the independent agency was in trouble, but Discovery Networks only found out late last month that M Bold & Friends would be liquidated.
Campbell said: "Our main concern is the impact on M Bold & Friends' creditors, particularly those commissioned to do projects on the Discovery business."
M Bold & Friends' managing director and founder, Terry Naude, was unavailable for comment.
Meanwhile, Discovery plans to short list three to four ad agencies to participate in a credentials pitch.
Campbell said they wanted an agency with strong, integrated strategic capabilities.
