BBCHundreds of people have lost their jobs after an international construction group filed for administration in the UK.
The majority of the 2,400 employees working for ISG have been made redundant after the UK business appointed joint administrators at EY, with trading stopping immediately.
EY confirmed to the BBC on Friday it had been appointed as joint administrators for the business which has a large office in Stoke Gifford, Gloucestershire, and built UWE’s Bristol Business School.
The construction services company had been trying to find a buyer but failed to secure a suitable rescue deal, EY said.
Apple, Barclays and Google are among ISG’s private sector clients in the UK
The BBC has seen an e-mail sent from CEO Zoe Price to all ISG staff on Thursday.
Ms Price wrote in it: “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.”
Ms Price said staff would be paid on Monday, as normal, and that the current situation had arisen due to “legacy issues” relating to “large log-making contracts” secured between 2018 and 2020.
“Trading out these projects has had a significant effect on our liquidity. So even though we have been profitable this year, our legacy has led us to a point where we have been unable to continue trading,” she added.
Ms Price said “significant efforts” had been made to find a buyer for the business but that these had been unsuccessful.
EY told PA the construction services company had attempted to find a buyer but failed to secure a suitable rescue deal.
The group, which was in the middle of numerous government projects, including work to prisons, will make the majority of its employees redundant with immediate effect.
Approximately 200 employees will initially be kept on to assist the administrators into winding down the business.
ISG is involved in 69 government projects totalling more than £1 billion, including work on prisons for the Ministry of Justice, data analysts Barbour ABI said.
A spokesperson for the government said: “We have implemented our detailed contingency plans and affected departments are working to ensure sites are safe and secure.”