A former recruitment firm, Premier Group, which owed HMRC £647,000, has sparked controversy by promising its staff an all-expenses-paid trip to Las Vegas after being bought back by its former owner, Andrew Woosnam. The company, now known as PGGBR Ltd, posted on LinkedIn about the trip, inviting staff to hit their targets and earn the reward. However, this move has raised questions about the legality of such a deal, as it could be seen as a form of phoenixism, where a company is liquidated and its directors rise from the ashes with a new entity, free of debts. HMRC has previously raised concerns about phoenixism, which costs the exchequer an estimated 22% of the £3.8 billion in tax losses reported in 2022-2023. The deal, which involved an initial payment of £10,000 and monthly instalments of £25,000 until September 2027, totals £610,000. This purchase price is in addition to the £1.2 million Woosnam borrowed from Premier, an outstanding debt that has increased by £265,000 since the end of 2024. Premier's annual reports show a total of £1.95 million in dividends were paid to shareholders in 2022 and 2023. The administrators, who were appointed by the old Premier business, also turned down a higher offer from an unnamed second bidder, who offered an initial cash consideration of £321,000 and a further royalty payment. This highlights the complex and controversial nature of the deal, leaving many questions about the fairness and legality of the transaction.
