Phoenix companies and the role of the Insolvency Service
- The Insolvency Service
- Part of:
- Investigations and enforcement: what we do, our outcomes and complaints
- First published:
- 7 October 2015
- Last updated:
- 24 March 2017, see all updates
This guide explains the role of the insolvency service in investigating phoenixism
Phoenixing, or phoenixism, are terms used to describe the practice of carrying on the same business or trade successively through a series of companies where each becomes insolvent (can’t pay their debts) in turn. Each time this happens, the insolvent company’s business, but not its debts, is transferred to a new, similar ‘phoenix’ company.
The insolvent company then ceases to trade and might enter into formal insolvency proceedings (liquidation, administration or administrative receivership) or be dissolved.
Published: 7 October 2015
Updated: 24 March 2017
- Improved information on re-using a company name
- First published.