Construction firm ISG entered administration last week
Liverpool workers are missing out on hundreds of pounds of work after being unable to access their tools from a construction site at HMP Liverpool for over a week. The contractors were working to refurbish the prison before the major construction firm leading the job suddenly went bust.
ISG entered administration at the end of last week, leading to the redundancy of most of its 2,400 UK employees. The firm ceased trading immediately at the end of last week after appointing joint administrators from EY, who confirmed that efforts to find a buyer were unsuccessful.
The London-headquartered company will retain around 200 staff temporarily to help with winding down operations. ISG’s portfolio includes 69 central government projects worth over £1bn, as per data from Barbour ABI.
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ISG were carrying out a major refurbishment of HMP Liverpool when the company collapsed. Self-employed contractors told the ECHO they were refurbishing the facility’s G Wing when the news arrived. When they travelled to the prison the next day they were not allowed in, with their crucial tools remaining locked on site.
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One self-employed worker, who had been contracted on the project, told the ECHO: “We first heard the news about ISG last Thursday, but we were told if we went to the prison on Friday we would be able to get on site to get our tools. But when we got there the security staff wouldn’t let us in.
“It has now been over a week without access to our tools. We are having to turn down other work because we can’t do it. There are self-employed joiners, electricians and plumbers all affected. We are living hand to mouth.
“Every tool I need to do my job is on that site and I am missing out on hundreds of pounds a day in work. It is not a good time to not be working, we are looking at Christmas coming up. “
The contractor, who asked not to be named, said he and others have been trying to contact the Ministry of Justice and the prison directly but have been repeatedly fobbed off or ignored. A Prison Service spokesperson has now told the ECHO that contractors will be given access to the site to collect equipment on Monday.
A statement from EY released last week said: “On September 20 2024 Timothy Graham Vance, Alan Michael Hudson and Dan Edkins of EY-Parthenon’s Turnaround & Restructuring Strategy team were appointed as Joint Administrators to the following eight UK trading entities of ISG: ISG Central Services Limited, ISG Interior Services Group UK Limited, ISG Fit Out Limited, ISG Engineering Services Limited, ISG UK Retail Limited, ISG Retail Limited, ISG Construction Limited and ISG Jackson Limited (all in administration) (together “the companies”).
“ISG’s UK operations, which provided construction and related services across the UK, have ceased to trade with immediate effect. ISG’s UK business has experienced liquidity constraints in recent months. The directors explored a number of options to secure the future of the business, including a sale of all or part of the group and refinancing options.
“Despite significant efforts to secure a sale of the group over many months, a deal could not be completed. Whilst 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.
“Due to current market conditions, an alternative sale or additional funding could not be secured. As a result, the directors made an application to Court to place certain UK trading entities of ISG in administration.”
“Headquartered in London, ISG employs c.2,400 people across its UK businesses providing construction, fit out and engineering services. As the business has ceased to trade, regrettably the majority of roles will be made redundant with immediate effect. Approximately 200 employees will initially be retained to assist the administrators in winding down the business.”
In response to the situation, a Government spokesperson previously said: “We have implemented our detailed contingency plans and affected departments are working to ensure sites are safe and secure.”
A Prison Service spokesperson said: “Access to the building site at HMP Liverpool was restricted for security and safety reasons but we have arranged for contractors to collect their tools from Monday 30 September. We apologise for any inconvenience this may have caused.”