{"id":143982,"date":"2024-09-24T13:07:22","date_gmt":"2024-09-24T12:07:22","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=143982"},"modified":"2025-01-02T11:12:39","modified_gmt":"2025-01-02T11:12:39","slug":"isg-falls-into-administration-2000-jobs-lost","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/hr-skills-news\/isg-falls-into-administration-2000-jobs-lost\/143982\/","title":{"rendered":"ISG falls into administration, 2,000+ jobs lost"},"content":{"rendered":"

ISG group has failed at attempts to make a deal and has fallen into administration, resulting in 2,200 workers being made redundant “with immediate effect”<\/h2>\n

ISG was the UK’s sixth largest construction firm, with over \u00a31.15bn of public sector contracts, including \u00a3518m contract with the Ministry of Defence. The group, owned by US firm Cathexis, had revenues of \u00a32.2bn.<\/p>\n

The administrators in charge of the process said: \u201cWhilst 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.”<\/p>\n

Glenigan<\/a> says effects of the ISG group administration will be “far worse than initial figures suggest”<\/h3>\n

Glenigan have stated that the ISG group’s administration will affect many projects and subcontractors<\/a>, and that many analysts have underestimated how much of an impact it will have.<\/p>\n

At the time of going into administration<\/a>, ISG had \u00a32.5bn of projects on site, and had been awarded contracts for another \u00a31.7bn.<\/p>\n

This means they have left 33 awarded contracts, 57 projects in progress on site, and 3 close to completion, as well 19 construction frameworks worth over \u00a3104bn, all up in the air.<\/p>\n

Glenigan economic director, Allan Wilen, said: “ISG\u2019s demise is set to dampen overall industry workload in the near term as clients look for contractors to complete projects currently on site and as recently awarded projects are re-tendered. Its subcontractors and suppliers will be under increased financial pressure and contractors\u2019 nationwide will need to review and work with their own supply chains to minimise financial stress and avoid any additional loss of industry capacity.”<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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