Accountancy firm TSM Tenon was appointed to sell the company's assets by the high court on September 27 and all staff have been made redundant, The Guardianreports. The company, which was founded in 1992, had been experiencing financial difficulties for some time. Lyons resigned from Big Pictures five months ago but remained chairman of the board.
"The paparazzi business has changed so dramatically," Lyons told the Herald Sun. "It's like the industrial revolution and smart business people have to move with the times."
Lyons, who took part in Celebrity Big Brother last year, is rumoured to have bid for the agency's archive, which consists of over 5 million photographs of celebrities such as Angelina Jolie, David Beckham and Katie Price. Getty Images is also said to have bid for the archive.
A former Big Pictures employee said: "We were told last Friday that the administrators had been appointed and they said we were not going to get paid for August and we would be made redundant."
Earlier this year it emerged that Virgin Atlantic was to be investigated after handing details of its celebrity passengers to Big Pictures.