ISG Ltd (formerly Interior Services Group) is a privately owned, London-based construction company that employed around 3,000 people, mainly in the UK, mainland Europe and the Middle East.
During the mid 2000s, the firm opted to reduce its presence in some markets, such as France and Germany, while embarking on an spree of acquisitions, including Propencity, Commtech Asia, and Pearce Group.
In September 2024, following months of concerns about its finances and a stalled sale of the group, eight ISG businesses entered voluntary administration; it was called the biggest collapse in Britain's construction sector since Carillion in 2018.
At the time of its collapse, ISG was working on over 600 construction, fit out and retail sites, including 69 UK public sector projects worth at least £1.84bn.
[12] One year later, David King became Interior Services Group's chief executive while Roy Dantzic was appointed its chairman; other changes around this time included the sale of the firm's facilities management division to Erinaceous for £10 million.
[20][21] In September 2011, Interior Services Group reported a record high in terms of revenue while profits for its struggling south west construction division had roughly halved.
[27] In March 2016, ISG was taken private by the US-based firm Cathexis (the investment vehicle of Texan billionaire William Harrison),[28] previously a substantial shareholder, in a £85m takeover.
[1] ISG's order book was adversely affected by the August 2022 suspension of the Britishvolt gigafactory in Blyth, Northumberland, and delays to a film studio project in Hertfordshire.
[36][37][38][39] In November 2023, ISG CEO Matt Blowers and other senior staff held urgent meetings with stakeholders to reassure them about the financial status of the group.
[1] There were also changes affecting the company secretary, vice-chair and chief financial officer roles;[43] in the last five years, ISG's highest-paid executive had been paid over £18m.
[32] In October 2023, a subcontractor's winding-up petition stoked staff and supplier concern about ISG's financial stability,[44] and the company began to look for a buyer or a cash injection from Cathexis.
Administrator Ernst & Young (EY) later said that on 2 September 2024, Antipodean had dropped its offer to £1 while remaining committed to funding working capital needs.
[51][57] According to Construction News, some site workers were told that the firm – ranked by turnover as the sixth biggest contractor in the UK[58] – had gone under, amid rumours that it had been struggling to pay subcontractors.
She explained ISG's problems stemmed from legacy issues relating to large loss-making contracts secured between 2018 and 2020, which, as a result of the COVID-19 pandemic, had a significant effect on liquidity.
[48] Regarding the failed sale to Antipodean Holdings, a joint EY/ISG statement said: "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.
[39][48] Because of ISG's extensive involvement in ongoing public sector projects, UK government officials were reported to be monitoring the situation and appointing advisors to implement "detailed contingency plans";[57][68][69] on 24 September 2024 the Insolvency Service set up information pages for employees and creditors.
[99] The 1,200-member National Federation of Roofing Contractors calling on the government to increase penalties for late payment; numerous NFRC members experienced heavy losses when ISG collapsed.
[101] David Frise, CEO of the Building Engineering Services Association, said "the lessons of Carillion have not been learned", adding "ISG needs to be construction's last major financial collapse that threatens entire supply chains, and the government must help us put a more robust and fit-for-purpose industry in place.