ISG, thought to be the UK’s sixth largest construction firm by turnover with over £1bn worth of Government contracts, has collapsed with the potential loss of thousands of jobs in the supply chain.
The company which is owned by US firm Cathexis, and built the velodrome for the 2012 London Olympics went into administration last week after failing to find a buyer. It is the first Tier 1 contractor to be liquidated following Carillion’s collapse in 2018.
In an email to staff last week, ISG chief executive Zoe Price said there were “legacy issues relating to large loss-making contracts primarily in the residential, logistics and distribution sectors” secured between 2018 and 2020. Around 2,200 employees have been made redundant since the announcement.
Barbour ABI said ISG was involved in 69 government projects including 22 prison contracts for the MoJ. These included a £300m contract to extend Grendon Springhill 2 prison and a £155m deal to expand three other sites.
The company was also thought to be involved in 16 projects for the Department for Education and the Department for Work and Pensions.