Rival firms have begun battling it out for ISG’s fit-out teams with the firm’s prized Google job at the centre of discussions, Building understands.
The firm won the £150m job last year and earlier this summer began moving onto the scheme next door to King’s Cross station in London.
ISG eventually beat Overbury to the work with industry speculation that the latter will be asked to take over because of its size.
With ISG’s impending collapse, Overbury, which recently beat Mace and ISG to a £100m fit-out job for law firm A&O Shearman, is by far the biggest fit-out contractor in the UK with a revenue of £1.1bn.
But Building understands that Overbury already has a lot of work on, leaving the door open for smaller rivals such as Mace and US firm Structure Tone to be considered.
“There’s a lot of moving parts, not least where the ISG fit out directors go,” a source said. “There are a few firms vying for teams.”
Former ISG boss Matt Blowers has been linked with a move to Structure Tone, which was founded in New York more than 50 years ago and currently employs nearly 5,000 people across more than 50 offices.
This morning an ISG spokesperson said that its fit-out arm, by far the most profitable part of the group, will also go into administration.
Administration notices were filed yesterday for six businesses within the ISG group but not for its fit out business, which had a turnover of £568m in 2022 and a pre-tax profit of £24.5m, according to its most recent accounts filed at Companies House.
The spokesperson for ISG said it was “his understanding” that the division, which is based in Aldgate, would go into administration along with all other UK businesses within the group.
Court documents show the administration application was made yesterday afternoon. Another UK subsidiary, ISG Interior Services Group UK Limited, has also applied for administration bringing the total number of UK firms to have done so to eight.
