An 80-year-old home renovation company has been forced to cut dozens of jobs and close multiple sites after beginning administration proceedings.
Birmingham-based floor coverings specialist Headlam has shed 154 roles and shuttered 28 of its trade counters after falling into administration.
The firm, which employs roughly 1,300 people, appointed administrators from Interpath earlier this week (September 8).
Trade counters, retail points within factories where tradespeople purchase products, were closed across the country as part of the move.
An 80-year-old flooring firm is cutting dozens of jobs after filing for administration
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Despite entering administration, Headlam confirmed it would keep operating while a restructuring process is carried out.
Headlam’s difficulties had been signalled earlier this month when its shares were suspended following a warning that a lack of liquidity would likely force it to bring in administrators.
The restructuring will take the form of a Company Voluntary Arrangement, resulting in the closure of more than a third of Headlam’s 76 trade counters.
Despite this latest business update, the firm’s network of 17 distribution centres and 48 remaining trade counters will continue operating.
The high street has been hit with store closures in recent months. | PA
High streets have been hit by a wave of closures since the pandemic | PA
Administrators indicated that the business intends to refinance its debt and pursue cost-cutting measures aimed at placing its finances on a “sustainable” footing over the longer term.
According to the administrators, Headlam had been hit hard by economic headwinds, notably rising costs and weak consumer confidence.
Combined, these factors are understood to have undermined the company’s financial position and ultimately triggered the liquidity shortfall.
Will Wright, UK chief executive at Interpath and joint administrator to Headlam Group, said on Wednesday: “Our immediate priority is to those employees whose roles have been lost as a result of today’s site closures
The announcement also follows the introduction of the Future Homes Standard, which mandates that new properties incorporate technologies such as heat pumps and solar panels | DEVONSHIRE HOMES
“We understand this is devastating news and we are committed to ensuring that everyone impacted receives the support and information they need as quickly as possible.
“For the rest of the business, our focus is on implementing a restructuring that will give Headlam the best chance possible of recovery.
“Subject to the ongoing support of the group’s key stakeholders, including customers and suppliers, we believe the proposed plan provides a credible path to stabilising the business.