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Recruiter liquidates new firm after failing to pay for bust predecessor's assets

Created at 30 Aug · 2:46 PM1 source↑ Market-relevant
IN SHORT

A UK recruitment executive has placed his new company into liquidation after failing to make promised installment payments for the assets of his previous, debt-laden firm. This raises further questions about 'phoenixism' in business liquidations.

Key Numbers

£2.9mPremier Group Recruitment's total debt
£647,000Amount owed to HMRC by Premier Group Recruitment
£10,000Initial payment for Premier Group Recruitment's assets
£600,000Total promised installment payments for assets
£25,000Monthly installment payment amount
£1.2mDirector's loan received by Woosnam from Premier
£2mDividends taken by Woosnam since 2022
15%Failure rate of connected party sales without deferred consideration
37%Failure rate of connected party sales with deferred consideration

Who's Involved

Andrew Woosnam
Recruitment executive and 99% shareholder of Premier Group Recruitment and PGGBR Ltd
Premier Group Recruitment
Bust recruitment company that entered administration
PGGBR Ltd
New company founded by Andrew Woosnam, now in liquidation
HMRC
Creditor to Premier Group Recruitment
University of Wolverhampton
Conducted research on connected party sales for the UK government

↳ Why This Matters

This case highlights concerns about 'phoenixism,' a controversial business practice where directors liquidate insolvent companies and immediately re-establish new entities, potentially leaving creditors and taxpayers with significant losses. The repeated failure of such arrangements raises questions about the efficacy of current insolvency regulations and the protection of creditors.

Key facts

  • A recruitment executive's new company has been placed into liquidation.
  • The new company, PGGBR Ltd, failed to make installment payments for assets acquired from its predecessor, Premier Group Recruitment.
  • Premier Group Recruitment owed £2.9m when it entered administration.
  • Andrew Woosnam, the executive in question, had previously received a £1.2m director's loan from Premier.
  • Research indicates a higher failure rate for companies acquired by connected parties using deferred consideration.

A UK recruitment executive, Andrew Woosnam, has placed his new company, PGGBR Ltd, into liquidation after failing to meet installment payments for the assets of his previous firm, Premier Group Recruitment. Premier Group entered administration in September 2025, owing £2.9 million, including £647,000 to HM Revenue and Customs (HMRC).

Woosnam, who was Premier's 99% shareholder and had received a £1.2 million director's loan, acquired the company's assets for PGGBR Ltd with an initial £10,000 payment and a promise to transfer £600,000 over two years in £25,000 monthly installments. Despite early signs of success, including an incentive trip for consultants, PGGBR Ltd fell behind on these payments.

Filings at Companies House revealed PGGBR Ltd appointed a voluntary liquidator on Sunday. This development follows significant redundancies at the new business in July, which sources indicated amounted to at least half its staff, with some affected employees reportedly not being paid. Woosnam is also understood to be planning another new venture.

Woosnam had previously taken dividends totaling almost £2 million from Premier since 2022. The situation at PGGBR Ltd echoes broader concerns about 'phoenixism,' the controversial practice of liquidating companies to allow directors to re-establish businesses debt-free. Research, including a 2014 study for the UK government and a 2018 EU-funded study, suggests that sales to connected parties using deferred consideration significantly increase the risk of buyer mortality.

Frequently asked questions

'Phoenixism' refers to the controversial practice of liquidating an insolvent company and then re-establishing a new entity with a similar business, often allowing directors to shed debts.

Premier Group Recruitment owed approximately £2.9 million when it entered administration, including £647,000 to HMRC.

The new company, PGGBR Ltd, acquired the assets for an initial £10,000 and promised to pay a further £600,000 in monthly installments of £25,000.

Research indicates that sales to connected parties using deferred consideration (future installment payments) have a significantly higher failure rate compared to sales without this arrangement.

What Happens Next

01Woosnam is understood to be planning to launch another new company.
02The voluntary liquidation process for PGGBR Ltd will proceed.
CME Headlines
  • September 2026 Delivery Date Memo - Effective August 24, 2026
    24 Aug · 4:34 PM

How It Developed

Premier Group Recruitment entered administration in September 2025, owing £2.9m.
Andrew Woosnam's new company, PGGBR Ltd, acquired Premier's assets for an initial £10,000 and a promise of £600,000 in installments.
PGGBR Ltd fell behind on its promised payments to the administrator.
Woosnam made significant redundancies at PGGBR Ltd in July.
PGGBR Ltd appointed a voluntary liquidator on Sunday.
Woosnam changed the name of another business he founded to PGREC in June.

Sources

T1
Recruiter places ‘phoenix’ firm into liquidation just months after repurchase erased millions in debtThe Guardian

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