Bust companies revived in ‘phoenix’ deals more likely to fail again, study finds

Bust companies revived in ‘phoenix’ deals more likely to fail again, study finds

Research commissioned by the Guardian shows that firms rescued through pre‑pack administration, often called ‘phoenix’ deals, have a higher chance of collapsing again. The study found these arrangements typically leave creditors with significantly lower recoveries compared to other insolvency processes, raising concerns about their effectiveness and impact on the broader business environment for investors and regulators alike.