ISG companies on the verge of being placed in receivership | News

Six ISG companies have filed for administration, court documents have revealed.

The notices were filed at around 4.30pm this afternoon and relate to the following companies: ISG Construction, ISG Jackson, ISG Retail, ISG Engineering Services, ISG UK Retail and ISG Central Services. The company’s development division is not mentioned in the documents.

The news caps a day of feverish speculation about the Ernst & Young deal, which declined to comment amid speculation it was poised to manage a possible administration.

Throughout the day, Building was contacted by concerned customers and contractors, as well as subcontractors and consultants, about rumours the company was about to go into administration.

It is understood that next week’s payroll has been postponed until this week and staff will be paid before any imminent failure.

ISG was to be acquired by an unnamed buyer, believed to be a South African businessman who made his fortune in health products.

But the deal promised “in the coming days” nearly 11 weeks ago by ISG Chairman Matt Roche has still not materialized.

A subcontractor said this afternoon: “ISG’s yards are being cleared of work as we speak. We are on our way to their yards now.”

ISG is owned by a US private equity firm called Cathexis, run by a Texas billionaire named William Harrison. The firm paid £85m for the then-listed business in 2016.

ISG has been contacted for comment.