Jobs go at flooring firm - but 110 saved after deal

Flooring firm Headlam has axed more jobs and shut trade sites after falling into administration – but more than 100 posts have been saved.

The company has cut a further 64 roles and closed 25 trade counters.

The business, which entered insolvency last month, previously announced 154 job losses and 28 counter closures.

However, administrator Interpath says about 110 jobs have been secured after rival national flooring business Likewise Group struck a deal to snap up parts of the collapsed firm.

The £14.9 million agreement will see Solihull-headquartered 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.

Bosses say the deal will help the business – whose estate includes bases on the outskirts of Glasgow, Gateshead, Leeds, Manchester, Newbury, Newport and Sudbury – grow towards a £300 million revenue target.

They add the agreement will also see Likewise buy the principal intellectual property of Headlam and support the sale of residual stock across Headlam’s remaining premises.

Shares in Birmingham-based Headlam will now be delisted from London Stock Exchange.

Ryan Grant, managing director at Interpath and joint administrator, said: “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.”

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