The recent closure of ISG has resulted in immediate job losses for around 2,200 employees, amid the insolvency of two of its subsidiaries.
- ISG Interior Services Group UK Ltd and ISG Fit Out Ltd filed for administration, following liquidity issues within the company.
- A total of 2,400 roles may be lost, with only 200 positions temporarily retained to aid in the business wind-down.
- Potential buyers were unable to secure funding, halting any sale that could have preserved jobs.
- The industry reacts with dismay, as affected employees seek new opportunities and express their frustrations on social media.
In a sudden development, approximately 2,200 jobs have been made redundant at ISG, following the company’s declaration of insolvency. This decisive action follows the collapse of its subsidiaries ISG Interior Services Group UK Ltd and ISG Fit Out Ltd. As administrators from Ernst & Young took over, it was confirmed that ISG’s UK operations have ceased trading immediately.
The administrators, Timothy Graham Vance, Alan Michael Hudson, and Dan Edkins, revealed that the bulk of ISG’s 2,400 employees will face redundancy. Only 200 employees will be retained temporarily to assist in winding down the company’s operations. This decision follows months of liquidity constraints, which forced the firm’s directors to consider various measures, including potential refinancing and sale options.
Despite efforts to sell the business, potential purchasers could not sufficiently demonstrate the necessary funding to recapitalise ISG. The administrators clarified that despite discussions, it was impossible to conclude a sale due to inadequate financial assurances from potential buyers. South African entrepreneur Andre Redinger and Australian investor James Overton were involved in these deliberations. Redinger claimed readiness to secure a deal, asserting that his company, Antipodean Holdings, could have secured ISG’s future. Meanwhile, Overton criticised the company’s ownership for failing to prioritise the interests of employees and the supply chain.
In response to the closures, several former ISG employees have turned to LinkedIn to announce their availability for new roles. Emotional expressions of disappointment were prevalent, with individuals sharing their distress over the collapse. One assistant planner described the situation as “a sad day for the industry,” while a social value advisor echoed feelings of heartbreak, having been optimistic about their career prospects at ISG until recently.
This closure has prompted other major firms in the industry, such as Mace, Amey, and Laing O’Rourke, to reach out and offer opportunities to those affected. The general sentiment within the industry is one of support and solidarity, as companies recognise the talent and potential of the displaced workforce.
The abrupt closure of ISG underscores the volatility in the construction industry, profoundly impacting its workforce.
