Key Takeaways
- Andrew Woosnam, a recruitment firm owner, has revived his business after going bust twice.
- Despite owing £3m to creditors, including HMRC, Woosnam’s company has managed to recover.
- A study suggests companies revived through ‘phoenix’ deals are more likely to fail.
Andrew Woosnam, a former recruitment firm owner, has managed to revive his business after going bankrupt twice, leaving creditors, including HMRC, out of pocket.
Woosnam, who built his fortune through his recruitment firms, has been able to recover, despite owing a substantial £3m to various creditors.
The recruitment industry, which has seen Woosnam rise to prominence over three decades, has now witnessed his business resurface, despite its previous failures.
Woosnam’s first business venture in the recruitment sector began in the 1990s, and he went on to create his own firm at the turn of the millennium, allowing him to amass millions in salary, dividends, and loans.
He also acquired assets, including a grand house in Berkshire, once owned by the comedians Dawn French and Lenny Henry, further cementing his status in the industry.
However, Woosnam’s business eventually failed, leading to his second bankruptcy. Despite this, he managed to revive the company, raising questions about the sustainability of such phoenix deals.
A recent study has found that companies revived through ‘phoenix’ deals are more likely to fail, suggesting that Woosnam’s current success may be short-lived.
The study, which analyzed the performance of companies that have undergone phoenix deals, concluded that these businesses are at a higher risk of failure compared to those that have not undergone such revivals.
Woosnam’s ability to recover from bankruptcy and revive his business has raised concerns among industry experts, who warn that such practices can lead to further financial instability.
