(Bloomberg) -- ISG Ltd. has ceased trading and will make the majority of its 2,400 staff redundant with immediate effect.
Eight of the UK construction firm’s trading subsidiaries have been placed into administration, according to a statement on Friday. Around 200 of the company’s staff will be retained, while all other roles will be lost.
Ernst & Young was appointed by a court on Friday to handle the administration. “As the business has ceased to trade, regrettably the majority of roles will be made redundant with immediate effect,” a spokesperson for EY said in a statement. “Due to current market conditions, an alternative sale or additional funding could not be secured.”
ISG did not respond to requests for comment.
The company reported annual revenue of £2.2 billion ($2.9 billion) and pretax profits of £11.5 million, according to the latest accounts filed to Companies House.
ISG is one of the largest construction companies in the UK. Its collapse would mark the biggest casualty in the sector since Carillion went into liquidation in 2018. High inflation has hit the industry hard: Construction contracts run for years, so a run-up in material costs can quickly make some projects unprofitable.
The firm is owned by private equity firm Cathexis Holdings LP, which has been attempting to sell ISG in recent months.
“Despite significant efforts to secure a sale of the group over many months, a deal could not be completed,” EY said in its statement.
(Adds details about job cuts, firm ceasing trading.)
©2024 Bloomberg L.P.