Recruiter places ‘phoenix’ firm into liquidation just months after repurchase erased millions in debt

New company reportedly quickly fell behind with promised repayments to administrator

A recruitment executive who was allowed to buy back the assets of his bust company in instalments, despite it accumulating almost £3m of debt, has placed his new business into liquidation after falling behind with promised payments to the administrator.

The news is the latest event to raise questions about the practice of “phoenixism”, accounting’s controversial art of liquidating companies to allow directors to return with a new entity, free of debts.