ISG boss apologises to staff in late night email

Here is the complete email:

Some of you might have come across news articles stating that ISG has entered administration in the UK. Regrettably, I can confirm that this information is accurate.

"I didn't want you to learn about this like this, and it shouldn't have been shared in such an unexpected way. We had an organized plan to update you on Monday when we had more details to share. Unfortunately, the information got out during the filing process, which is why I’m reaching out to you tonight."

"Before I elaborate further, I want to clarify that, despite what the media has reported, you will receive your pay as usual on Monday. I understand that this may not alleviate all the uncertainty you’re feeling about the future."

You deserve to know what has been going on in recent months. I've noticed the speculation and rumors circulating for a while now, and we've done all we can to protect ISG from this predicament. I understand that it may have felt like there was a shortage of information being shared.

The reality is that a small group has leaked every bit of our communication to the media, which hasn’t aided our efforts to save ISG. That’s why we’ve been particularly careful over the last few months.

To provide some context, the Group's trading and cash flow have been affected by past challenges linked to significant unprofitable contracts acquired between 2018 and 2020. These issues mainly stem from the Residential, Logistics & Distribution sectors, along with certain Data Centre projects.

Exchanging these projects has greatly impacted our cash flow. As a result, despite being profitable this year, our past decisions have left us in a situation where we can no longer keep trading.

I want to inform you that there has been a lot of work done over the past several months to finalize a sale of the Group. Although there has been a lot of talk about this lately, I want to clarify that we weren't able to complete the sale because the buyer couldn't provide the necessary funds to recapitalize the business. Cathexis has also explored options for refinancing the company in recent months but has been unsuccessful in doing so.

"We explored the possibility of selling separate business units to outside parties; however, we weren't able to finalize those discussions within the given timeframe."

"We had no choice but to seek administration. I truly regret having to announce this."

"I'm confident that each of you will continue to focus on what truly matters right now, whether it's keeping everyone safe, supporting your teammates, or working with clients and subcontractors."

If you work on a site: - Sites will remain closed tomorrow, and there is no need for you to report to work. - We are pausing the operations of subcontractors, and there will be a structured method for them to collect their equipment and tools once the administrators are officially appointed. They will be informed about when this can occur. - It's important to ensure that all sites are kept secure and safe at all times.

If you work in an office: - The office will be closed. - You’ll be informed about when you can pick up your belongings. - Certain people may be allowed in if the administrators determine it's necessary.

I truly regret having to communicate this information again. I appreciate all the support you've provided as part of the team.

“The next step is to select the administrator, and we’ll reach out to you shortly to explain what that entails and how you can access the information you’ll need moving forward.”