Serial Entrepreneur's Firms Collapsed With £3M in Debts, Now Revived

A recruitment industry veteran whose companies collapsed leaving creditors — including HMRC — more than £3 million out of pocket appears to have relaunched operations under new arrangements, raising fresh scrutiny over so-called phoenix business practices in the UK.

Andrew Woosnam spent roughly three decades in the recruitment sector, building his own firm at the start of the millennium after learning the trade during the 1990s. Over that period he drew substantial sums in salary, dividends and loans, and acquired significant personal assets including a large Berkshire property previously owned by comedians Dawn French and Lenny Henry.

Read more Onsemi in Talks to Acquire Chip Startup Ferric for $1 Billion →

When his businesses failed, the unpaid debts left creditors — among them the UK tax authority HMRC — bearing the financial consequences. The pattern is consistent with what researchers describe as a phoenix company arrangement, in which a business collapses and its assets or operations are revived under new corporate structures, often shedding liabilities in the process.

Research cited alongside the case suggests phoenix companies carry a meaningfully higher risk of subsequent failure compared with ordinarily formed businesses, compounding the harm to suppliers, employees and public creditors who absorb the losses from each collapse. Critics argue current insolvency rules in the UK do not do enough to restrict directors whose firms repeatedly fail with outstanding debts.

The case highlights a broader debate in Britain over director accountability and the ease with which individuals can distance themselves from failed companies while continuing to operate in the same industry. Regulators have faced mounting pressure to strengthen disqualification powers and close loopholes that facilitate repeat insolvencies. Continue reading at Business | The Guardian.