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Construction firm, ISG, has gone into administration, with operations ceasing to trade with immediate effect.
Owned by US firm, Cathexis, EY has been appointed as the Joint Administrators.
Administration notices have been filed by the following companies:
- ISG Central Services Ltd
- ISG Interior Services Group UK Ltd
- ISG Fit Out Ltd
- ISG Engineering Services Ltd
- ISG UK Retail Ltd
- ISG Retail Ltd
- ISG Construction Ltd
- ISG Jackson Ltd
In a statement on the UK’s company website it reads: “On 20 September 2024 the Companies entered administration and Timothy Vance, Alan Michael Hudson and Dan Edkins were appointed as Joint Administrators.
“ISG’s UK operations have ceased to trade with immediate effect. No further work will be undertaken on existing UK contracts, including for Construction, Fit Out and Engineering services.”
David Crosthwaite, Chief Economist, at the Building Cost Information Service (BCIS), predicts further construction businesses will fail as a result of ISG’s collapse. He said: “The failure of ISG is likely to have serious knock-on effects for the sector. This is the largest business failure since Carillion and the ramifications will no doubt be serious.
“ISG directly employed circa 2,200 employees who are now out of a job.
“Further impacts will be felt throughout the supply chain as sub-contractors and suppliers are left unpaid.
“Cashflow is critical for construction businesses and as soon as there are negative impacts on cashflow then it doesn’t take much for those businesses to fail.
“So, I suspect that insolvency numbers will rise as a result of the ISG failure.
“In addition, there will also be a raft of projects, at various stages of completion, that will be left unfinished and which clients will need to replace with a new contract as soon as possible to avoid compounding any losses.”
