Companies in bust companies revived phoenix deals were more likely to fail again when former owners or directors bought back their assets, according to research commissioned by The Guardian. Turnstone Intelligence found that 44% of pre-pack administrations involving a connected buyer had led to another insolvency by July 2026.
The figure was 26% when an unconnected buyer acquired the assets. The findings also point to weaker returns for unsecured creditors, including HM Revenue and Customs, when former insiders took over through deferred payments.
Former owners more often paid later
Turnstone Intelligence used AI agents to examine official documents relating to more than 1,700 administrations during 2019. The research focused on…