Flooring firm Headlam has cut more jobs and shut more trade sites after falling into administration. The company, which entered insolvency last month, has cut a further 64 jobs and closed 25 trade counters, after previously announcing the closure of 28 counters and 154 job losses.
Likewise Group secures 110 jobs in £14.9 million deal
Administrators from Interpath said around 110 jobs have been secured after rival flooring business Likewise Group struck a deal to snap up parts of the collapsed business. The £14.9 million deal will see Likewise buy Headlam’s Thatcham distribution centre, including operating assets and inventory on sites, the trade and assets of its Crucial Trading business, and trade and assets for Concept Flooring in West Bromwich and Stoke-on-Trent.
It will also acquire the principal intellectual property of Headlam. The administrators also entered into an agreement which will see Likewise assist them in selling all residual stock across Headlam’s remaining network of premises.
Headlam shares to be delisted from London Stock Exchange
Likewise, which saw shares tick higher on Wednesday, said the deal will help it grow towards its target of £300 million in revenues. Birmingham-based Headlam, which specialises in floor coverings, saw its shares suspended after announcing plans to hire administrators early in September.
Headlam, which was valued at more than £500 million at its peak, confirmed on Wednesday that its shares will now be delisted from London Stock Exchange.
Administrators explain sale decision
Ryan Grant, managing director at Interpath and joint administrator, said: “Following our appointment, we set out to explore all options available to the companies, including exiting the administration through a CVA and a broader restructuring of the group’s debt.
“Over the past weeks, we have worked closely with the companies’ key stakeholders to test those routes thoroughly. As that work has progressed, it has become clear that a sale of certain parts of the business and assets represents the best and most deliverable outcome for creditors.”
