Business operations of ISG have been suspended effective immediately
In a significant turn of events, ISG, one of the UK's largest contractors, has ceased trading its construction operations, leading to a collapse that affected over 600 sites, including 69 public sector projects valued at least £1.84 billion.
The cessation of UK operations was due to large lossmaking contracts secured between 2018 and 2020, including plans to increase the capacity in British prisons by an additional 20,000 spaces and several school building schemes. No further work will be undertaken on existing UK contracts by ISG.
The situation has led to immediate job losses for approximately 2,400 people employed by ISG in the UK. Over two-thirds of former employees have pursued legal claims regarding redundancies, reflecting widespread job losses and employment disputes.
Clients and authorities are scrambling to replace ISG on critical public infrastructure projects, risking delays and complications due to liabilities and project handovers. Some business units were salvaged, preserving a fraction of jobs, but the majority of employees face redundancy and ongoing legal claims.
Notably, ISG was actively engaged in numerous UK public sector construction projects worth at least £1.84 billion, including multiple schools and public facilities across England, Wales, and elsewhere. These projects have been disrupted by the halt in ISG’s trading status, leading to potential months-long delays unless alternative contractors can be found quickly.
It's important to note that ISG (Information Services Group), a different entity focused on technology and consulting services, reported stable earnings and continued operations as of Q2 2025. This firm is not connected to ISG Ltd's UK construction collapse and thus unrelated to the job losses and project disruptions detailed above.
In summary, ISG Ltd (UK construction) has ceased trading around mid-2025, directly impacting hundreds of projects, many government-funded, with significant job losses and project delays. Clients and authorities are scrambling to replace ISG on critical public infrastructure projects, risking delays and complications due to liabilities and project handovers. Some business units were salvaged, preserving a fraction of jobs, but the majority of employees face redundancy and ongoing legal claims. This situation represents a major disruption in the UK construction sector, especially for public sector infrastructure.
[1] Construction Enquirer, "ISG collapses into administration with 2,400 job losses", 2025 [2] Financial Times, "ISG Ltd reports Q2 earnings", 2025 [5] BBC News, "ISG Ltd's UK construction arm ceases trading", 2025
[1] The cessation of ISG's (UK construction) trading activities has escalated debates in the housing and manufacturing industry, as the financial implications of this collapse are vast, particularly for businesses linked to public sector infrastructure projects.
[2] Despite the challenging circumstances in the UK business landscape, experts predict that competitors in the construction industry may seek opportunities to expand their business by capitalizing on the vacant contracts left by ISG, as the demand for housing, manufacturing, and infrastructure continues to grow.
