The company rose quickly to prominence and was noted for its polished, high-budget approach to packaging and advertising (at a time when this was not commonplace in the British software industry), as well as its self-promotion and ambition.

[7] The following year the debts mounted, with further advertising and tape duplication bills going unpaid, and Imagine was forced to sell the rights to its games to Beau Jolly in order to raise money.

[4] Mark Butler also made an appearance on Thames Television's Daytime programme in 1984, talking about his experience of having been a millionaire who lost his money at a young age.

On 28 June 1984 a writ was issued against Imagine by VNU Business Press for money owed for advertising in Personal Computer Games magazine, and the company was wound up on 9 July 1984 at the High Court in London after it was unable to raise the £10,000 required to pay this debt (though by this time its total debts ran to hundreds of thousands of pounds).

[12] Most of the concepts originally intended for Bandersnatch eventually appeared in another Psygnosis game, Brataccas, for the 16-bit Atari ST, Amiga and Macintosh computers.