A building owner has said it is working to 'mitigate any delays' for the ongoing refurbishment of Maidenhead’s Tempo building after the project’s contractor entered administration.
The major scheme to transform the former Three UK headquarters into new state-of-the-art offices has been plagued by delays since work got underway in March 2022.
News has now emerged that construction firm ISG, who were awarded the contract to oversee the £40million redevelopment, has ceased its UK operations immediately due to financial troubles.
A spokesperson for administrators EY-Parthenon said: “ISG UK’s operations, which provided construction and related services across the UK, have ceased to trade with immediate effect.
“ISG’s UK business has experienced liquidity constraints in recent months. The directors explored a number options to secure the future of the business, including a sale of all or part of the group and refinancing options.
“Despite significant efforts to secure a sale of the group over many months, a deal could not be completed.”
The statement added: “Whilst there has been misleading speculation surrounding the potential sale in the last few days, we wish to be clear to employees, suppliers, and customers that it was not possible to conclude a sale as the potential purchaser could not, despite repeated requests of them to do so, adequately demonstrate that they had the funding needed to recapitalise the business and keep it solvent.”
The statement added: "Due to the current market conditions, an alternative sale or additional funding could not be secured.
“As a result, the directors made an application to court to place certain trading entities of ISG in administration.”
ISG confirmed that the majority of its 2,400 employees across the UK have been made redundant with immediate effect.
A spokesperson for the administrators said the company could not comment on the impact of the administration on specific projects.
The original completion date for the scheme, which pledged to deliver ‘one of the greenest offices blocks in the Thames Valley', was May 2023.
In July, building owners Legal & General Investment Management told the Advertiser the project was due to be completed in spring/summer 2025.
This was due to the need for a new sub-contractor to complete façade of the new office building.
A spokesperson for Legal & General Investment Management told the Advertiser this week: “We are currently working through project timelines to mitigate any delays the project may incur ahead of the scheduled completion next year.”
US pharmaceutical giant Johnson & Johnson and tool firm Stanley Black & Decker have both agreed deals to move into the state-of-the-art offices once the scheme is completed.
Johnson & Johnson is planning to unite all staff from its Thames Valley campuses at a central hub in Maidenhead in 2026.
American firm Stanley Black & Decker will also be moving to the town from its previous base in Bath Road, Slough.
A shared 5,000 sq ft roof terrace is planned as well as a ground floor café which will be open to members of the public.
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