‘Phoenix’ business receives rejected application

19 October 2021

An application for a standard national goods vehicle operator’s licence was refused recently by the Traffic Commissioner. The application was rejected on the grounds that it was an example of a ‘phoenix’ business. A phoenix business is commercial entity or business which has emerged from the collapse of another through some sort of insolvency.

The applicant had applied for a licence for two vehicles, and stated that she would be operating in the haulage sector. However possible links with a revoked operator were spotted by the central licencing unit. The revoked operator was not a sole trader but instead was operating as a partnership.  That business had never downloaded vehicles tachograph data or cards, had failed to give any vehicles any sort of safety inspection after MOT and had operated a vehicle with false number plates which was also not taxed and didn’t have an MOT. The business had also operated four vehicles instead of the authorised two, and had failed to carry out any form of driver defect reporting system.

The Traffic Commissioner revoked a total two applications. Further down the line, the Traffic Commissioner then received an application from the applicant.

It now transpires that the applicant intended to use vehicles transferred to her from the other business, and that the business would not operate in the general haulage sector, and instead, would operate in the waste sector. This was all brought to light during the subsequent public enquiry.

The Traffic Commissioner refused the application on the grounds that the applicant  lacked the necessary good repute, as she was attempting to resume the business of a revoked licence.

If you require any advice in respect of similar situations, please contact our regulatory team on 01254 828300