Compulsory strike off

[Ruth]

I have a tenant that seems to be setting up a new company every year and is then getting it compulsory struck off, only to set up a new one.

Please can someone explain this to me?

 

[Huyann]

Hi Ruth,

It sounds like your tenant might be "phoenixing." That's when a company winds up to dodge debts and then starts a new company with the same business but a different name. Basically, they get a fresh start without their old debts.

This sneaky move helps them avoid things like taxes, wages, and debts to creditors. If you think that's going on, keep a close eye on it. It might be a good idea to talk to a financial advisor or legal expert to know your rights and options as a landlord.

Also, think about having stricter vetting procedures for future tenants to steer clear of this kind of hassle.