Forvis Mazars has been appointed as administrator for Seventynine Lighting Ltd after it fell into administration following the aftermath of ISG
Seventynine Lighting Ltd was left in debt worth £2m following ISG’s sudden insolvency last month.
Seventynine was a subcontractor specialising in lighting design, previously working on projects for Monsoon, Selfridges, and Victoria’s Secret.
The otherwise successful company faced challenges with the fall of ISG, being their largest customer.
It was concluded that this issue could not be rectified, and the best course of action was to wind down into administration. Trade has ceased, and 30 staff have been made redundant.
ISG’s collapse has left hundreds of subcontractors in debt
The collapse of ISG has been found to leave hundreds of suppliers and subcontractors with debt owed to them by ISG, according to Companies House. The total is expected to grow.
Joint administrator for Seventynine Lighting Ltd, Mark Boughey, said: “Although Seventynine Lighting has historically been a profitable and successful business, its sudden insolvency is unfortunately not an uncommon occurrence in the construction industry.
“A major contractor going into administration materially impacts the supply chain of other subcontractors involved in its projects.
“Whilst some of the inherent financial risks of the construction sector cannot be fully removed, it can help if subcontractors take a few steps to protect themselves where possible.
“These can include diversifying their customer base, monitoring the credit ratings of key suppliers and using risk-based products such as credit insurance.
“These tools can sometimes help businesses to manage and reduce their financial exposure where there are warning signs of an insolvency in their customer base or supply chain and, in the event of a failure, potentially recover some of their losses.”
The post Lighting contractor Seventynine goes under in ISG aftermath appeared first on Planning, Building & Construction Today.
