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Business

Bust companies revived in 'phoenix' deals fail again

Published Sunday, October 25, 2026 · Updated October 25

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Narrative Spectrum

Convergent Narrative · 0
  • Critique of Phoenix Deals and Insolvency Practices — 1 source

Media Analysis

AI synthesis

A study has found that companies revived through 'phoenix' deals, especially when assets are bought by a connected party, are more prone to a second insolvency, causing significant losses to creditors and taxpayers. The practice of 'pre-pack administrations' is under scrutiny, with one case highlighting a businessman whose company twice entered insolvency with substantial debts.

What We Know — Key Points

  • A study by Turnstone Intelligence found that 44% of pre-pack administrations where assets were bought by a connected party resulted in a second insolvency by July 2026, compared to 26% when the acquirer was unconnected.
  • Andrew Woosnam's Premier Group Recruitment went into administration in September 2025 owing £2.9m, including £647,000 to HM Revenue and Customs.

What Is Claimed — Perspectives

Critique of Phoenix Deals and Insolvency Practices
  • The Guardian

    The Guardian highlighted a study by Turnstone Intelligence revealing that companies revived through 'phoenix' deals, particularly those involving connected parties, are significantly more likely to fail again, leading to substantial losses for taxpayers and unsecured creditors. The article also emphasized the questionable practices of 'pre-pack administrations' and the apparent ability of a businessman to continue operating despite significant debts to creditors and the taxpayer, citing the case of Andrew Woosnam's Premier Group Recruitment.

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