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 fallen behind on promised payments after pledging to send staff on an all-expenses paid trip to Las Vegas.
The development is the latest case to raise questions about the practice of “phoenixism”, accounting’s controversial art of liquidating companies to allow directors to rise from the ashes with a new entity, free of debts.
