Liverpool-based business lobbying and networking group Downtown in Business steps up campaign for a crackdown on serial ‘phoenix companies’. Tony McDonough reports
Downtown in Business (DIB) is calling on the Government to take tough action against serial ‘phoenix companies’ who it claims are exploiting current insolvency rules.
A phoenix company is a new business that rises from the ashes of a previously insolvent or liquidated entity. Often the same directors from the collapsed business start up the new one after paying to carry on using the name and assets.
This, says Downtown chief executive Frank McKenna, can leave suppliers, contractors, and taxpayers out…