With the new year also comes new companies or maybe that should be the same company with a different name.
It would seem all a company has to do these days to offload their debt is to take a few dots or add a new word onto their company name and hey presto a new company emerges, or is it an old one?
The phoenix firm phenomena does not seem to going away,
despite the Financial Service Authorities singing from the rooftop that it is doing everything it can to crack down on them, so why are they still cropping up.
One firm doing a phoenix is not a big issue, but when lots of firms start to take the strategy it becomes a bit more serious.
If a small company gets burned more than once by a phoenix firm it could mean the end of them. While doing a phoenix might be the best thing to do for the company involved and all its staff it is not thinking about the wider implications and what that might mean for the industry.
The thing that really seems to get the industry fuming though is the attitudes of the directors of phoenix firm, not all of them are guilty, but from some there seems to be no acknowledgement of what they are actually doing.
There are no apologies issued and no explanations given, instead there is hype around saving the future of the brand.
It would be interesting to see if firms relaunching would be welcomed more by the industry if they started from scratch with a new name and new identity, my guess is that they probably would.