The collapse of the group behind well-known fitness brands including Triyoga, Barrecore, Boom Cycle, Kobox and Reformcore has brought the issue of so-called “phoenix companies” back into focus.
A Guardian investigation published on 3 October 2026 reported that Common Bond, the group which operated the businesses, had stopped trading after experiencing financial difficulties.
The report says around 100 Triyoga instructors remain unpaid, a winding-up petition was filed in September and concerns have been raised by some of those affected about the way the businesses previously moved between corporate entities.
Those concerns remain allegations and questions raised by affected parties.
There has been no finding that Common Bond or its former management engaged in unlawful phoenix activity, and any investigation into the conduct of those involved must be allowed to take its course.
But the case does provide a useful opportunity to explain an often misunderstood area of insolvency:
starting or buying a business after another company fails is not automatically unlawful.
The important issue is how it is done.
What happened to Triyoga and Common Bond?
Triyoga was one of London’s best-known yoga businesses, with a history stretching back more than two decades.
In recent years, it became part of a wider group of fitness businesses under Common Bond.
The group also included:
- Barrecore;
- Boom Cycle;
- Kobox; and
- Reformcore.
According to The Guardian, trading across the businesses was suspended during September 2026.
The report says instructors and other workers were left unpaid and some customers were left with prepaid classes or credits they were unable to use.
It also reports that a winding-up petition was filed against Common Bond on 18 September 2026.
Why has phoenixing been mentioned?
The background to the current collapse is relevant.
Common Bond had previously acquired assets connected with United Fitness Brands, another fitness group which had itself entered an insolvency process.
The Guardian reports that some former instructors and others affected by the latest failure have questioned whether the movement of business assets between successive companies amounts to “phoenixing”.
That term is often used very loosely.
There is an important distinction between:
legitimate phoenix activity, and
abusive phoenixism.
They are not the same thing.
What is a phoenix company?
A phoenix company is commonly used to describe a new company which continues all or part of the business of a company that has failed.
That can involve:
- purchasing assets;
- taking over premises;
- employing staff;
- acquiring intellectual property;
- buying stock;
- using a similar trading name; or
- continuing broadly the same business activity.
None of those things is automatically unlawful.
Insolvent businesses are routinely sold as going concerns.
In many cases, selling a viable business or its assets can produce a better result for creditors than simply shutting everything down.
It can also preserve:
- jobs;
- customers;
- supplier relationships;
- goodwill; and
- the value of the underlying business.
When does phoenix activity become abusive?
The Insolvency Service defines abusive phoenixism as conduct where directors repeatedly misuse insolvency or dissolution processes to avoid paying creditors or commit fraud.
Examples which may attract scrutiny can include situations where directors:
- deliberately leave liabilities behind in one company;
- transfer valuable assets away without paying proper value;
- continue the same business through another company;
- repeatedly accumulate HMRC or supplier debts;
- retain assets which should have been available to creditors;
- use insolvency as a means of avoiding liabilities; or
- operate a succession of companies which repeatedly fail.
Again, the existence of a new company carrying on the same business does not, by itself, establish abusive phoenixism.
The circumstances of the transaction matter.
Can directors buy assets from their own insolvent company?
Potentially, yes.
Directors or connected parties can sometimes purchase assets from an insolvent company.
But the transaction must be properly handled.
One of the central issues is normally value.
An insolvency practitioner has a duty to obtain an appropriate return for the assets of the insolvent company.
That can mean obtaining independent valuations, marketing assets where appropriate and documenting why a particular sale represents the best available outcome.
A connected-party purchase which is transparent, properly valued and commercially justified can be entirely legitimate.
A transfer of assets at an undervalue is very different.
Why are valuations important?
When an insolvent company’s assets are sold to its directors or a connected business, the transaction is likely to receive greater scrutiny.
That is because there is an obvious potential conflict.
For example, imagine a company owns equipment, a customer list and intellectual property worth £100,000.
If those assets are transferred to a new company controlled by the same directors for £10,000 without proper marketing or valuation, questions will inevitably arise.
If they are independently valued, properly marketed and sold for the best available price, the position is very different.
This is why evidence around value and the decision-making process is so important.
What about using the same company name?
There are also specific restrictions on the reuse of company names after liquidation.
Section 216 of the Insolvency Act 1986 can prevent a director of a company which enters insolvent liquidation from being involved with another company using the same or a sufficiently similar name for five years.
There are exceptions, but the rules are technical and breaching them can have serious consequences.
That is another reason directors considering buying back a business or starting again should take advice before doing so.
What happens to unpaid workers?
The Triyoga story also highlights another important issue.
Many instructors in the fitness industry work on a freelance or self-employed basis.
That can significantly affect their position if a business fails.
Employees may have statutory rights to claim certain sums through the Government’s Redundancy Payments Service, including qualifying amounts for:
- redundancy;
- unpaid wages;
- holiday pay; and
- notice pay.
Freelancers and self-employed contractors generally do not have the same statutory protection.
Instead, they may simply rank as unsecured creditors in the insolvency for money owed.
That can make the financial consequences of a business failure particularly severe.
What about prepaid customers?
Customers who have paid in advance can also be affected.
Where someone has bought:
- class credits;
- memberships;
- gift cards;
- subscriptions; or
- prepaid services,
and the business subsequently fails, they may become an unsecured creditor for the unused balance.
Whether they recover anything depends on the circumstances of the insolvency and whether sufficient assets are available.
This is one reason businesses holding large amounts of customer prepayments can create complex insolvency issues when they fail.
Why is the Insolvency Service focusing on phoenixism?
This case comes at a particularly interesting time.
The Insolvency Service published a new five-year strategy on 29 September 2026 which makes abusive phoenixism one of its key enforcement priorities.
Its dedicated phoenixism taskforce is being expanded to 50 people by 2028.
The Agency also says it is working more closely with:
- HMRC;
- Companies House; and
- other enforcement bodies
to share data and identify suspicious patterns earlier.
During 2025/26, the Insolvency Service says it completed 148 civil investigations involving suspected abusive phoenixism, with 87 directors disqualified and five criminal convictions resulting from its phoenix-related enforcement work.
This is therefore an area directors should expect to receive increasing attention.
Is starting another company after liquidation illegal?
No.
This is perhaps the most important point for directors.
You are generally allowed to start another company after a previous company enters liquidation.
The failure of one company does not automatically prevent a director from trading again.
Many perfectly legitimate businesses fail because of:
- loss of major customers;
- rising costs;
- bad debts;
- market conditions;
- funding problems;
- unexpected events; or
- simply a business model which no longer works.
A genuine business failure is not the same as misconduct.
The problems arise when the insolvency process is deliberately abused.
Can you buy your old company’s assets?
Again, potentially yes.
A director may be able to purchase company assets from a liquidator or administrator.
The important point is that the transaction must be conducted properly.
That normally means:
- assets being independently valued where appropriate;
- the office-holder considering the interests of creditors;
- the price being commercially justifiable;
- proper documentation being retained; and
- any connected-party relationship being fully disclosed.
Directors should never simply move assets from one company into another because they believe they personally own or control them.
Once a company is insolvent, company assets remain company assets.
Could HMRC debts simply be left behind?
No.
The fact that a company cannot afford to pay HMRC does not automatically mean its directors have done anything wrong.
But repeated patterns of companies building substantial tax liabilities and then continuing the same business through another entity can attract attention.
The Insolvency Service has specifically identified the practice of repeatedly leaving debts behind while continuing substantially the same business as one of the behaviours its phoenixism enforcement work is designed to address.
This is particularly relevant where companies repeatedly accumulate:
- VAT;
- PAYE;
- National Insurance;
- Corporation Tax; or
- other Crown debts.
What should directors do if they want to continue the business?
If a company is insolvent but the underlying business may still have value, there may be legitimate options.
These could potentially include:
- a sale of the business;
- a sale of assets;
- administration;
- a pre-packaged sale in appropriate circumstances;
- a purchase by an independent third party; or
- a connected-party purchase conducted through the proper insolvency process.
The correct route depends entirely on the circumstances.
The key point is that directors should take advice before moving assets, customers, staff or trading activity to another company.
Trying to recreate the transaction afterwards is considerably more difficult.
What does the Triyoga situation tell us?
At present, it is too early to draw conclusions about the conduct of those involved in Common Bond.
The Guardian reports that Nectar Capital has begun an investigation into the former management of the business, while concerns have been raised by instructors and others affected by the collapse.
Those matters may or may not ultimately result in findings of wrongdoing.
But the wider lesson is important.
There is nothing inherently unlawful about buying assets from an insolvent company and continuing its business.
What matters is:
- how the assets were acquired;
- what was paid for them;
- whether proper valuations were obtained;
- whether creditors were treated appropriately;
- whether directors complied with their duties; and
- whether insolvency was being genuinely used to deal with business failure rather than avoid legitimate liabilities.
Worried about starting again after liquidation?
One of the most common concerns we hear from directors is:
“Can I start another company after liquidation?”
In many circumstances, the answer is yes.
But if you want to buy assets, continue the same business, retain the same customers or operate under a similar trading name, it is important to structure things correctly.
At DCA Business Recovery, we provide confidential insolvency advice to directors across England and Wales.
We can explain:
- whether liquidation is appropriate;
- what happens to company assets;
- whether directors can purchase those assets;
- the restrictions around company names;
- how Directors’ Loan Accounts are treated;
- and what happens if you want to start again.
Taking advice early does not mean you have committed to liquidation.
If we believe there is a genuine reason why you should not liquidate your company, we will tell you.
You can also get an indication of the likely cost of a Creditors’ Voluntary Liquidation using our online quote tool.
Read the Guardian investigation:
Inside the collapse of Triyoga
Read the Insolvency Service’s current strategy on abusive phoenixism:
Our vision: moving forward, faster 2026
This article is intended for general information only and does not constitute legal or insolvency advice. References to concerns about phoenixing in relation to Common Bond are based on publicly reported allegations and do not amount to a finding of misconduct. The legal position will depend on the facts of each case.
