Construction group ISG files for administration putting 2,400 jobs at risk

Construction company ISG, which was involved in constructing various government projects including prisons, has gone into administration in the UK putting thousands of jobs at risk.

Most of its 2,400 employees have been made redundant with immediate effect after the UK business appointed joint administrators at EY (a consulting firm), and trading stopped immediately.

The construction services company tried to find a buyer but failed to secure a suitable rescue deal.

Around 200 employees will initially be kept to assist administrators in winding down the business.

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ISG is working on 69 central government projects worth over £1 billion, including prison developments for the Ministry of Justice, data analysts Barbour ABI said.

This includes 22 projects for the Ministry of Justice, such as a £300 million extension of Grendon and Springhill prisons in Buckinghamshire and £155 million in expansion work for three other prisons, the data showed.

ISG also worked on other large projects including police fire stations, schools and offices.

Barbour ABI’s chief analyst Ed Griffiths said the live projects were “just the tip of the iceberg” when it comes to ISG’s portfolio of contracts.

He said: “The ripple effect will be extremely worrying for the hundreds of subcontractors involved.”

A spokesperson for the government said: “We have implemented our detailed contingency plans and affected departments are working to ensure sites are safe and secure.”

ISG is an international company with operations in Europe and the Middle East.

Eight divisions of its UK business, including its engineering and retail arms, have now been placed in administration.

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