The collapse of eight ISG companies has unveiled liabilities exceeding £800 million, impacting staff, creditors, and HMRC.
- EY-Parthenon was appointed as the administrator for the distressed entities on 20 September 2024.
- ISG Construction, among others, owes substantial amounts to the supply chain and cannot fully cover its HMRC obligations.
- Most recoverable assets, valued at £23.3M, will primarily benefit HMRC, with significant losses sustained by trade creditors and employees.
- ISG companies’ financial detailed filings reveal the extent of financial losses affecting various stakeholders.
The sudden collapse of eight ISG companies has created significant financial turmoil, revealing liabilities surpassing £800 million. Appointed on 20 September 2024, EY-Parthenon’s restructuring team oversees the administration of these entities, namely ISG Central Services, ISG Interior Services, ISG Fit Out, ISG Engineering Services, ISG UK Retail, ISG Retail, ISG Construction, and ISG Jackson. These entities primarily owe a staggering £197 million to the supply chain—a loss unlikely to be recovered.
ISG Construction, with liabilities amounting to £333.5 million, owes £89 million to trade creditors. Despite possessing £10.1 million in assets, the company fails to meet its commitments, notably the £19.7 million owed in VAT to HMRC, along with PAYE, NI, and CIS obligations. This financial shortfall also leaves staff unpaid, with approximately £2 million owed in wages still outstanding.
For ISG Central Services, the situation is similarly dire, as it faces £261.6 million in liabilities against a meagre £1.6 million in assets. Trade creditors alone are owed £6 million, with substantial losses anticipated for both VAT and employee claims, accumulating over £29 million in unretrievable debt.
ISG Engineering presents another substantial case, with nearly £60.4 million owed to the supply chain. The entity’s liabilities reach £128 million, whilst its assets tally at just £4.2 million, barely covering HMRC’s VAT claims. This scenario is emblematic of the broader insolvency predicament confronting these entities.
Similarly, ISG Interior Services is plagued with £82 million in liabilities. Trade creditors are owed £47,000, while HMRC’s losses exceed £3.2 million. The financial disclosures underscore how issued and called up capital vastly contributes to its liabilities.
The filings reveal ISG Retail’s complex financial standing, with £40.4 million owed to the supply chain. £7 million in recoverable assets fall short of the £13.3 million due to HMRC, spotlighting the depth of the financial discord.
ISG Jackson’s situation, albeit less severe, still reflects dire circumstances, with negligible assets and £28,000 in trade payables. HMRC faces losses of approximately £4,000 due to this insolvency.
Most of the companies’ assets, estimated at £23.3 million, are earmarked for HMRC, yet even this recuperation leaves the tax authority at a loss. The documentation laid out by the administrators at Companies House lays bare the extensive losses sustained by various stakeholders.
The downfall of ISG companies profoundly impacts creditors, employees, and HMRC, with the recovery prospects minimal.
