phoenixism
FEE-nik-siz-um
Definition
The controversial business practice of liquidating an insolvent company while allowing its directors to immediately restart the same operations under a new legal entity, effectively shedding the original company's debts.
Etymology
The term is derived from the mythical phoenix, a bird that cyclically regenerates or is otherwise born again from the ashes of its predecessor. It entered modern business terminology to describe the recurring 'rebirth' of failed corporate entities.
In the news
The article uses the term to describe the executive's tactic of resetting his recruitment business after accumulating millions in debt, highlighting the legal yet criticized nature of this practice.
Recruiter places ‘phoenix’ firm into liquidation just months after repurchase erased millions in debt
Read the full article ↗The Guardian