ESS and Spatial Initiative, which design, manufacture and install modular buildings, ceased trading on 23rd September 2024 with the appointment of administrators from EY-Parthenon.
Approximately 100 people have lossed their jobs as a result.
ESS was acquired by ISG in March 2022 but within months it was hived off and ownership was transferred to parent company Cathexis Holdings, the investment vehicle of 39-year-old Texan billionaire William Harrison. A strategy rethink had decided that ESS was likely to win more outside of ISG than inside it, free to work with both ISG and its competitors.
But with ISG down, so too now is ESS.
In a statement, EY said: “On 23rd September 2024 Tim Vance, Charles King and Andrew Dolliver of EY-Parthenon’s turnaround & restructuring strategy team were appointed as joint administrators to Extraspace Solutions (UK) Limited. Additionally, Tim Vance and Charles King were also appointed as joint administrators to Spatial Initiative Limited, a wholly owned subsidiary of Extraspace Solutions (UK) Limited.
“The companies experienced significant losses on legacy contracts that, in turn, placed them under severe liquidity pressures. Up to now this has been alleviated by continued shareholder funding however, material further cash funding was required to enable the businesses to continue to trade.
“Despite exploring options to safeguard the future of the businesses and secure additional funding, it has not been possible to raise the funding required to continue trading. As a result, the directors applied to place the companies into administration.
“Headquartered in Hull, the companies employ around 100 people. As the businesses have ceased to trade, regrettably the majority of roles will be made redundant with immediate effect. EY is working with the impacted employees to ensure they are being offered the appropriate support and advice.”
ESS was one of six suppliers selected last month for a Defence Infrastructure Organisation framework supplying single living accommodation for the armed forces.
