Guidance
Phoenix companies and the role of the Insolvency Service
This guide explains the role of the insolvency service in investigating phoenixism
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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 (cannot 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
Last updated 24 March 2017 + show all updates
Last updated 24 March 2017 + show all updates
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Improved information on re-using a company name
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First published.