Construction group ISG has appointed administrators for its UK operations, which have ceased to trade with immediate effect.
Earlier today, the company appointed Timothy Graham Vance, Alan Michael Hudson and Dan Edkins of EY-Parthenon’s turnaround and restructuring strategy team as joint administrators to ISG’s eight UK trading entities.
ISG’s UK businesses are: 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.
The company is headquartered in London and employs circa 2,400 people across its UK businesses providing construction, fit-out and engineering services.
The majority of roles at ISG will be made redundant with immediate effect and approximately 200 employees will initially be retained to assist the administrators in winding down the business.
In a statement, the joint administrators said ISG’s UK business had experienced “liquidity constraints” in recent months and although the directors of the company explored a number of options to secure the future of the business, including a sale of all or part of the group, as well as different refinancing options, a deal could not be completed.
The administrators added: “Whilst there has been misleading speculation surrounding the potential sale in the last few days, we wish 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.”
