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Peter Vinden, construction sector comment
ISG Construction Limited, ISG Engineering Services Limited, ISG Retail Limited, ISG UK Retail Limited, ISG Jackson Limited and ISG Central Services Limited all filed Notices of Intention to appoint Administrators yesterday.
It is far too early to tell if a “white knight“ is waiting in the wings to pick up the pieces, but for the sub-contractors and suppliers caught up in this maelstrom, this news will be extremely unwelcome.
We do not know the reasons why these ISG companies have taken these steps, but given the upturn in construction businesses entering into administration, it should not be too much of a surprise that one of the construction industry giants has failed.
In July of this year LC Director Peter Vinden, commented in an article for Construction News, predicting trouble ahead for the construction industry:
“The reality is that a number of main contractors are still recovering from their Covid hangovers. Material supplies are now flowing but the higher prices charged by suppliers and sub-contractors during and after Covid are never going back down. Contractors that entered into long term fixed price contracts have been caught stuck between the “rock” of fixed price contracts and the “hard place” of supply price inflation, caused by the aftereffects of Covid and Putin’s energy war in Europe.
These issues are slowly working their way out through the market, but it takes time to do so. I do anticipate more insolvencies in the construction sector this year and that we are in for a hard winter ahead.”
If your business is likely to be affected by the demise of ISG and you need confidential advice and support in weathering the storm, please do get in contact. We have a talented team of construction specialists and a range of refinancing options and support services you can tap into to help you navigate through the ISG storm.
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