TV show Kochie’s Business Builders is set to produce a series of videos to help you spot and protect yourself from dodgy phoenix

What is a phoenix company?

A phoenix company is one that closes up by going into liquidation. It then starts trading again under a new name, and does similar work using assets transferred
over from the old business. The main aim of these dodgy operators is to avoid paying bills.

Phoenix operators can leave you (and other workers, suppliers and customers) high and dry by not paying money they owe.

Signs to look for:

The business significantly undercuts other businesses.

Business owners lead extravagant lifestyles that don't appear to match their income.

The business premises and phone number are the same as the previous business.

The directors have had liquidated businesses before

To see the videos: