Around 2,200 people have been made immediately redundant from stricken contractor ISG as two more of its subsidiaries hit the brakes, administrators have confirmed.
ISG Interior Services Group UK Ltd and ISG Fit Out Ltd today (20 September) joined the six subsidiaries that appointed administrators from Ernst & Young (EY) yesterday (19 September).
ISG’s UK operations “have ceased to trade with immediate effect”, said joint administrators Timothy Graham Vance, Alan Michael Hudson and Dan Edkins.
They added that the majority of the firm’s 2,400 roles will be made redundant “with immediate effect”, with 200 employees initially kept on to help administrators wind down the business.
The administrators said ISG had experienced “liquidity constraints” in the past few months, causing directors to explore different options to secure the firm’s future, including refinancing or selling all or part of the group.
EY also challenged statements that had been made over the construction firm’s viability as a going concern.
They said: “While 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.”
The potential buyers earlier said that the sale had been progressing well. One of the pair, South African entrepreneur Andre Redinger, said that his company Antipodean Holdings was “ready to strike a deal that would have secured the company’s future and the jobs of its employees”.
The other owner, Australian investor James Overton, said: “ISG staff and the supply chain should be infuriated that the company’s ownership failed to see that and act in their best interests.”
Former staff have taken to LinkedIn to announce that they are now open to work.
One assistant planner wrote: “What a sad day for the industry. Absolutely heartbroken for all of my friends and colleagues at ISG.”
A social value advisor wrote: “After a little over three years with ISG, I find myself, like all my amazing and wonderfully talented colleagues, in a position where I am open to work.
“I genuinely never thought I would be writing this, particularly as I was so very hopeful and excited about the future just a couple of weeks ago.”
Meanwhile, hiring teams at other tier one firms including Mace, Amey and Laing O’Rourke have encouraged those affected to get in touch.