# Businesses revived by connected buyers were more likely to fail again

- URL: https://talkfuse.com/story/bust-companies-revived-in-phoenix-deals-more-likely-to-fail-again-study-finds/
- Published: 2026-10-25T09:00:57+00:00
- Updated: 2026-10-25T09:32:18+00:00
- Original publisher: The Guardian (publisher lean: Left)
- Original article: https://www.theguardian.com/business/2026/oct/25/bust-companies-revived-in-phoenix-deals-more-likely-to-fail-again-study-finds
- Topics: Americas, Business, Research, Science, World

## Key points

- Connected-party pre-packs were more likely to fail again.
- Deferred-payment deals often left unsecured creditors with little.
- The findings echo earlier research on phoenix companies.

## Summary

A study commissioned from Turnstone Intelligence found that businesses bought back by former owners or other connected parties through pre-pack administrations were more likely to fail again than those bought by outsiders. The findings add to concerns that “phoenix” deals can let businesses shed debts while shifting losses to creditors and taxpayers.

Researchers used AI agents to examine official documents for more than 1,700 administrations begun in England and Wales in 2019. By July 2026, 44% of connected-party pre-packs had ended in another insolvency, compared with 26% of deals involving unconnected buyers; connected buyers were also more likely to defer payment. Where connected buyers deferred payment, unsecured creditors received a return in just 23% of cases, averaging 1.58p per pound owed, against 36% of cases and 7.86p per pound for unconnected buyers. The results broadly match earlier studies.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.