Headlam Group has entered administration and cut 154 jobs as the UK flooring supplier begins a major restructuring process aimed at stabilising its finances.
The Birmingham-based company, which employs around 1,300 people, has also closed 28 of its 76 trade counters while continuing to operate through its remaining sites.
Flooring Supplier Faces Financial Pressure After Liquidity Warning
According to the BBC, Headlam had warned earlier in September that it expected to appoint administrators after facing a shortage of liquidity, leading to the suspension of its shares.
The company called in administrators on Tuesday and confirmed that its remaining 17 distribution centres and 48 trade counters would stay open while the business moves forward with a Company Voluntary Arrangement restructuring.
Administrators said the company had been affected by several economic pressures, including cost inflation and weak consumer confidence, which placed additional strain on its operations.
Restructuring Plan Targets Long-Term Stability
The administrators said Headlam would begin a refinancing process for its debt facilities alongside cost reduction measures designed to make the business financially sustainable over the longer term.
The plan is intended to preserve the company’s ongoing operations while addressing the financial challenges that forced it into administration.
Will Wright, UK chief executive at Interpath and joint administrator to Headlam Group, said: “Our immediate priority is to those employees whose roles have been lost as a result of today’s site closures.”
He added that the job losses would be “devastating news” for those affected, but said: “We believe the proposed plan provides a credible path to stabilising the business.”
Credit: Alamy/PA
Remaining Operations Continue During Company Restructuring
Headlam has continued trading during the restructuring process, with administrators focusing on maintaining the parts of the business that remain operational.
The company’s next steps will include efforts to secure new financial arrangements and reduce costs while protecting its remaining network of distribution centres and trade counters.
The business currently employs around 1,300 workers, with 154 roles removed following the latest site closures. Its remaining 17 distribution centres and 48 trade counters will remain open.
