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

A recruitment executive who acquired the assets of his insolvent company through a deferred payment plan has placed his new business into liquidation just months after falling behind on promised repayments. Andrew Woosnam, the 99% shareholder of Premier Group Recruitment, purchased the company’s assets in late 2025 through a new entity, PGGBR Ltd, despite Premier Group Recruitment owing nearly £2.9 million, including £647,000 to HM Revenue and Customs (HMRC). The move has reignited scrutiny over phoenix companies, a legal but controversial practice where directors transfer assets from a failing business into a new company, often leaving creditors unpaid.

Premier Group Recruitment entered administration in September 2025 with substantial debts, but Woosnam, who had previously taken director’s loans and dividends exceeding £3 million since 2022, purchased the assets with an initial £10,000 payment and a promise to pay an additional £600,000 in monthly instalments. However, filings with Companies House in March indicated that PGGBR Ltd had already fallen behind on these payments. By Sunday, new records revealed that PGGBR Ltd had voluntarily entered liquidation, raising concerns about the viability of such acquisition strategies.

The collapse of PGGBR Ltd follows reports that Woosnam made significant staff redundancies in July, affecting at least half of his workforce, with some former employees allegedly not receiving final payments. Industry sources also suggested that Woosnam is preparing to launch another new recruitment business, potentially named PGREC, following a name change from PGUSA in June. The company’s website has since been taken down, further signaling the end of operations.

The case highlights broader concerns about phoenix companies and deferred consideration sales, where connected parties repurchase assets from insolvent businesses through future payments. Research, including a 2014 UK government review by the University of Wolverhampton, has shown that such sales have a higher failure rate, increasing from 15% to 37% when deferred payments are involved. A 2018 EU-funded study similarly found that connected party sales pose a significantly higher risk of business failure.

HMRC, which had begun enforcement proceedings against Premier Group Recruitment, has not commented on the latest developments. The case underscores ongoing debates about the ethical and economic implications of phoenix company practices in the UK.

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