ISG, the international construction firm, has gone into administration, resulting in the loss of 2,200 jobs. The UK business had been struggling financially for some time, despite holding more than £1bn worth of government contracts. Owners Cathexis had been attempting to secure a rescue deal but this failed, forcing ISG to appoint EY as joint administrators. Just 200 employees will be kept on to help wind down the business. Apple, Barclays and Google are among its private sector clients.
ISG currently has 69 ongoing UK government projects, totaling more than £1bn, including prison refurbishments for the Ministry of Justice. The firm also built the velodrome for the 2012 London Olympics. Ed Griffiths, chief analyst at data consultants Barbour ABI, warned that the ripple effect of ISG’s demise would be “extremely worrying for the hundreds of subcontractors involved”. A government spokesperson confirmed that contingency plans were in place and that departments were working to ensure affected sites were safe and secure.
Zoe Price, ISG CEO, wrote to all staff saying that she was “sad that this has happened” and blaming a legacy of contracts that were secured despite being large and loss-making between 2018 and 2020. She added that efforts to find a buyer had failed and the company was no longer able to trade. No potential buyers were able to secure the necessary funding required to keep the business solvent, according to EY.
ISG has eight sections in the UK, including engineering and retail, all of which are now in administration. The majority of staff lost their jobs immediately and work on all live projects has been paused
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