U.K. contractor ISG Ltd. entered administration, similar to bankruptcy in the U.S., Sept. 20. The company’s sudden downfall left other companies scrambling to respond and prompted some to call for changes in the way the U.K.’s construction industry operates.
The company said it immediately ceased U.K. operations and no further work would be undertaken on its contracts in the country. ISG laid off about 2,200 of its 2,400 employees. A court appointed three joint administrators from Ernst & Young LLP to manage the eight impacted subsidiaries: ISG Fit Out Ltd., ISG interior Services Group UK Ltd., ISG UK Retail Ltd., ISG Central Services Ltd., ISG Construction Ltd., ISG Jackson Lds., ISG Engineering Services Ltd. and ISG Retail Ltd.