IN construction’s biggest collapse since Carillion, ISG construction had links in Warrington, delivering the five-storey business incubator, The Base, on Dallam Lane.
With funding for the project from a £1.7m European Regional Development Fund grant and a £6.7m investment from Warrington Borough Council, ISG completed the work in December 2015.
The 50,000 sq ft business incubator was first block to be built as part of Warrington’s £190m Stadium Quarter scheme in Dallam Lane.
Earlier this week six ISG companies filed notices of intent to appoint administrators: ISG Construction Limited, ISG Engineering Services Limited, ISG Retail Limited, ISG UK Retail Limited, ISG Jackson Limited and ISG Central Services Limited. All six are subsidiaries of ISG Limited.
The company has been involved in numerous government projects, including more recently the refurbishment of HMP Liverpool’s B-Wing.
It has led to the redundancy of most of its 2,400 UK employees, with the firm ceasing trading immediately after appointing joint administrators from EY, who confirmed that efforts to find a buyer were unsuccessful.
It comes after months of speculation about the company and the collapse of an expected sale of the business.
Various reports as to why the sale failed vary but it appears the costs of refinancing ISG were beyond what the prospective new buyer was willing or able to stump up.
ISG Limited has not filed accounts for 2023 yet. Its 2022 accounts showed an £11.5m pre-tax profit on £2.2bn revenue.
ISG, originally Interior Services Group, has been owned by Cathexis since 2016 when it de-listed from the London Stock Exchange. The London-based company will retain around 200 staff temporarily to help with winding down operations. ISG’s portfolio includes 69 central government projects worth over £1 billion,.
In an email sent to staff on Thursday, ISG chief executive Zoe Price said: “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.”
Ms Price promised staff they would be paid on Monday, as normal, and said the current situation was the result of “legacy issues relating to the large loss-making contracts secured in between 2018 and 2020”.
ISG has worked on other large projects including building and refurbishment of prisons, police and fire stations, schools and offices.
