Warning: Undefined variable $sources in /var/www/html/wp-content/mu-plugins/exp-live-media-urls.php on line 67
Warning: foreach() argument must be of type array|object, null given in /var/www/html/wp-content/mu-plugins/exp-live-media-urls.php on line 67
Warning: Undefined variable $sources in /var/www/html/wp-content/mu-plugins/exp-live-media-urls.php on line 70
Warning: Undefined variable $sources in /var/www/html/wp-content/mu-plugins/exp-live-media-urls.php on line 67
Warning: foreach() argument must be of type array|object, null given in /var/www/html/wp-content/mu-plugins/exp-live-media-urls.php on line 67
Warning: Undefined variable $sources in /var/www/html/wp-content/mu-plugins/exp-live-media-urls.php on line 70
Phoenixing
Phoenixing or phoenixism is the practice of setting up businesses multiple times to avoid paying debts.
Each time the company becomes insolvent, its business and assets are transferred to a new, similar company, so the same directors can carry on trading. Its debts aren’t transferred however – they stay with the insolvent company.
Phoenix businesses do not always indicate fraudulent activity, although there can be cause for suspicion. For example, transferring assets, potentially below market value, is an indicator of fraud and could leave creditors, including employees and suppliers unpaid.
Read our infographic to spot the potential signs and protect yourself from financial crime