9th Sep 2026 11:08
Headlam Group PLC - Coleshill, England-based floor coverings distributor - Appoints Will Wright, Chris Pole and Ryan Grant from Interpath Ltd as administrators on Tuesday, having first announced its intention to do so last week. Headlam says the administrators intend to keep the business trading while they restructure operations.
Headlam says it has developed a "comprehensive transformation plan" as part of its recent strategic review. "However, given the scale of losses incurred over recent years and the exhaustion of liquidity under the existing group's existing facilities, the company was unable to implement the transformation plan within the constraints of its funding position." The restructuring will involve a company voluntary arrangement, the refinancing of debt facilities, and "significant" cost cuts.
As part of this effort, Headlam also on Tuesday says it has completed the sale and leaseback of its Bristol distribution centre property. The sale proceeds of GBP3.2 million excluding VAT represent a premium of 50% to the book value of GBP2.1 million and 14% to the last market valuation of GBP2.8 million. "The Bristol distribution centre remains a core part of Headlam's distribution network and therefore trading continues as usual following the sale. The Bristol Trade Counter will also remain operational. The group has entered into a leaseback until 31 December 2026. The net sale proceeds will be used to repay existing debt after deducting part of the proceeds to fund the upfront leaseback costs for one month during the restructuring period as Headlam seeks to establish a more sustainable platform for the future," the company says.
Headlam says it intends to seek to have trading of its share on the London Main Market restored after the restructuring is complete. At this point, Wilf Walsh will move to non-executive chair from non-executive director. Stephen Bird, the current chair, leaves the board, together with Non-Executive Director Nick Kelsall, upon the appointment of the administrators.
By Tom Waite, Alliance News editor
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