Time runs out as ISG heads into administration
ISG, the construction specialist, has shut its offices and sites with immediate effect and will go into administration, chief executive Zoe Price told staff in an email on Thursday night.
The news comes as six subsidiaries of ISG filed notices to enter administration on Thursday.
In the email to staff, Price says: “Some of you may have seen reports in the media that ISG has filed for administration here in the UK. With sadness, I can confirm that this is factually correct.
“This was not the way I wanted you to find out and the news should not have leaked in this way. We had a managed plan to tell you what was happening on Monday once we had more clarity, but news has leaked at the filing stage – and that is why I am writing to you tonight.”
She acknowledged that there had been rumours and speculation about the company for some time, with CEO Matt Blowers and finance director Karen Booth departing the company in February of this year.
The statement also pointed towards long-term issues as a result of loss-making contracts from 2018 – 2020.
Efforts were made to sell the company, as well as individual units, but time ran out, forcing their hand to file for administration.
The email continues: “I want you to know there have been significant efforts made to secure a sale of the group over many months. While there has been speculation for some weeks now, I can confirm that it was not possible to conclude a sale, as the purchaser could not satisfy the funding needed to recapitalise the business. Cathexis also looked at refinancing the company in recent months but has been unable to execute.
“We also looked at selling individual business units to third parties but again, we have not been able to conclude these negotiations in the timescale.
“This has left us no option but to file for administration. Again, I am so sorry to have to share this news.”
The situation has quickly drawn comparisons to the collapse of Carillion back in 2018 and the company is in the process of securing an administrator.