Six UK Subsidiaries of ISG Enter Into Administration

Six UK subsidiaries of the country’s sixth largest contractor ISG, with a £2.2 billion turnover, have applied to enter administration late afternoon on Thursday 19th September 2024.

The collapse is the biggest corporate construction failure since Carillion subsided six years. Thousands of jobs are now at risk and the industry supply chain can expect to see a significant knock-on effect.

In recent months ISG has made “significant efforts” to rescue its UK operations, says ISG CEO Zoe Price, amidst speculation of financial struggles. The Group cites legacy issues relating to the large loss-making contracts secured in between 2018 and 2020 (primarily in the residential, logistics & distribution sectors as well as some data centre projects) as the principal reason for its failure.

Offices are now closed and sites are shut as the administration process begins. It is not yet confirmed which administrators will be appointed to the case.

The firms that filed notices are: ISG Construction Limited, ISG Engineering Services Limited, ISG Retail Limited, ISG UK Retail Limited, ISG Jackson Limited and ISG Central Services Limited.

The successful ISG Fitout limited, which made a £24m profit and turned over more than £500m in last reported accounts, has not been included in the court applications.