One of UK’s largest prison-builders collapses into administration – putting 2,200 jobs at risk
ONE of the UK’s biggest prison-builders has collapsed into administration.
ISG — which has more than £1billion of government contracts — is the largest UK construction firm failure since Carillion went bust in 2018.
Administrators at EY yesterday confirmed ISG had stopped trading with immediate effect and 2,200 staff would be made redundant.
Around 200 workers are being kept on to help wind it up.
Sources said it would have a huge effect across the construction industry as contractors are stood down.
ISG was said to be working on a £150million fit-out of Google HQ and was involved in 69 central government projects totalling £1billion-plus.
Barbour ABI analyst Ed Griffiths said its live projects were “the tip of the iceberg”, adding: “The ripple effect will be extremely worrying for the hundreds of subcontractors involved.”
ISG had 22 projects with the Ministry of Justice, including a £300million extension to the Grendon and Spring Hill prisons in Buckinghamshire.
There was also £155million- worth of work to expand three jails in other locations.
The prison extensions are badly needed as jails are so full the Government has released inmates early.
Other large projects in its portfolio including renovating police and fire stations and schools.
Chief exec Zoe Price apologised to staff via a video call yesterday and said: “There is no recovery for ISG.”
Administrators said a potential purchaser could not “adequately demonstrate they had the funding needed”.
The Government said: “We have implemented our detailed contingency plans and affected departments are working to ensure sites are safe and secure.”
2.75% rate tip
MORTGAGE-holders will get some relief as the Bank of England is tipped to slash interest rates down to 2.75 per cent by the end of 2025.
HSBC economists reckon the Bank will make one more cut this year, from 5 per cent to 4.75 per cent in November, and then reduce it at every meeting next year.
Water £ limit
THAMES WATER has said it will run out of cash by Christmas unless investors allow access to £380million.
The firm has already asked creditors to push back debt payment dates, but warned it may have to enter a “standstill” — a form of bankruptcy protection — in December.
It has a £16.5billion debt pile.