One of UK’s largest prison-builders collapses into administration

Posted by Admin September 20, 2024 Jobs

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.

One of the UK’s biggest prison-builders has collapsed into administrationCredit: Alamy

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.”

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