Around 2,200 staff have lost their jobs after stricken construction giant ISG’s UK operations ceased to trade with immediate effect.
Timothy Graham Vance, Alan Michael Hudson and Dan Edkins of EY-Parthenon’s turnaround & restructuring strategy have been appointed joint administrators to eight UK trading entities of ISG: ISG Central Services Limited, ISG Interior Services Group UK Limited, ISG Fit Out Limited, ISG Engineering Services Limited, ISG UK Retail Limited, ISG Retail Limited, ISG Construction Limited and ISG Jackson Limited.
ISG’s UK business has experienced ‘liquidity constraints’ in recent months. The administrators stated that the group’s directors explored a number of options to secure the future of the business, including a sale of all or part of the group and refinancing options.
Despite ‘significant efforts’ to secure a sale of the group over many months, a deal could not be completed. The administrators added that, whilst there has been ‘misleading speculation’ surrounding the potential sale in the last few days, they wished to be clear to employees, suppliers, and customers that it was ‘not possible to conclude a sale as the potential purchaser could not, despite repeated requests of them to do so, adequately demonstrate that they had the funding needed to recapitalise the business and keep it solvent’.
Due to current market conditions, an alternative sale or additional funding could not be secured. As a result, the directors made an application to court to place certain UK trading entities of ISG in administration.
Headquartered in London, ISG employs around 2,400 people across its UK businesses providing construction, fit out and engineering services. The majority of roles will be made redundant with immediate effect, with approximately 200 employees initially retained to assist the administrators in winding down the business.
