The Forum of Private Business (FPB) has demanded that an investigation into corporate insolvencies should also address the issue of "phoenix" companies re-estabishing themselves under another name and leaving creditors unpaid.
Last week, the Office of Fair Trading (OFT) (12 Nov) launched an investigation into the corporate insolvency market and fears about the high cost of entering administration in the UK.
But the Forum of Private Business (FPB) wants the OFT investigation to also examine how to stop phoenix companies from abusing the administration process.
FPB policy representative Matt Goodman says: "When business drops out of the market, banks and the government take their cut, but what about the small business that has supplied that company and has never been paid, or if a competitor wipes the slate clean of debts and carries on 
trading? Where does that leave those small businesses struggling with their own finances?"
The problem of phoenix companies in the haulage business has been recognised for some time.
Last month, transport solicitor Lucy Wood warned that there has been an increase in the number of firms being called to public inquiry as a result of going into administration.
A spokesperson for the Office of the Traffic Commissioners says: "Any operator who finds themselves either heading towards or actually facing administration should work with their legal representative and take their advice. In addition, there are legislative requirements to notify the TCs of any changes made to an O-licence. Operators must do so in writing via the centralised licensing office at Hillcrest House, Leeds."