Collapsed Sydney design agency For The People is under investigation over claims it was “reborn” under a new corporate entity to evade debts.
The award-winning agency may also have traded while insolvent for almost seven years, according to the liquidator, who is investigating the possible “phoenixing”.
Phoenixing is the process of shifting staff, clients and other business assets to a new corporate entity to avoid debts and liabilities associated with a collapsed or troubled business.
According to the liquidator’s statutory report to corporate regulator ASIC, For The People owes more than $8 million, including just over $5 million in unpaid tax, and had just $494 in its bank account when it entered liquidation in…