ISG’s CEO, Zoe Price, has expressed regret to employees and vendors and said the company has filed for management as a result of loss-making agreements signed prior to the Covid crisis.

In a Thursday evening ( 20 September ) email sent to almost 3, 000 employees, Price said that the group’s” trading and cash performance has been impacted by legacy issues relating to the large loss-making contracts secured between 2018 and 2020″.

The executive did not say how many trouble employment combined to drop ISG, but said they were “primarily” in the home and logistics and distribution areas, alongside” some” data center projects.

” Buying out these projects has had a significant impact on our profitability,” said the company. But, even though we have been successful this time, our legacy has prevented us from continuing to trade, she said.

Price, who became ISG chief executive in February after 12 years as firm chairman, said it was” with anguish” that she confirmed the collapse, adding:” I am so sorry to have to discuss this information”.

In a separate email Price even apologised to manufacturers, saying” we’re sad to have to ensure this information”– but warned them:” Please do not make any attempt to gain access]to ISG sites ] as this will be denied”.

Employees were informed that they would be paid in full on Monday ( 24 September ) and that subcontractors would be able to pick up equipment once arrangements have been made by an administrator.

Cost claimed that ISG’s user Cathexis, who is supported by Texan tycoon William Harrison, “looked at refinancing the business in recent months but has been unable to execute.”

Additionally, Price added that” significant efforts were made over several months to acquiesce to the group’s purchase,” but that the buyer” could not meet the funding requirements to recapitalize the business.”

However, that has been disputed by Andre Rudiger, founder of would-be consumer Antipodean Holdings, who told Construction News that his business was “ready to reach a package that would have secured the company’s potential”.

Build UK, which represents professional contractors and has ISG as a member, said it was “another challenging time for development”.

Nearly 3, 000 people and the supply network, which is already under great strain, may be affected by ISG entering management. There will be a major influence on those just beginning their design career, it said.

The industry body added that the design industry’s business model is” serious questions” due to the high rate of liquidations.

Despite the recommendations for more creative and lasting ways of working that have been featured in every record since Latham, it continued,” for very long, improper transfer of risk and untenable profit margins have been accepted as the way of doing business.”

Robert Sanders, chief financial officer at Structura, described the announcement as “awful” for the industry.

The company, which is curtainwall engineering contractor, had already significantly reduced its work to date due to concerns for its future, and only had one project in progress. He warned that other specialists had more exposure and were susceptible to severe punishment.

” Many subcontractors will be owed a lot of money,” he said. I really feel for them”, he said.

According to National Access & Scaffolding Confederation CEO Clive Dickin,” The collapse of ISG is a financial blow to subcontractors as well as a logistical nightmare for scaffolding companies, who are now faced with weeks of uncertainty over the fate of their equipment and contracts.”


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