Headlam Group (LSE:HEAD) PLC said administrators will be appointed later today as the flooring distributor moves to protect the business and pursue a wide-ranging restructuring.
Will Wright, Chris Pole and Ryan Grant of Interpath Advisory are expected to be appointed joint administrators to Headlam Group (LSE:HEAD) and HFD Limited following court confirmation.
The company said trading will continue during the process, with the aim of stabilising operations, maintaining customer service and engaging with suppliers and other stakeholders.
Headlam had been undertaking a strategic review after mounting losses and a deteriorating liquidity position, but said it was unable to implement its transformation plan within the constraints of existing funding facilities.
The proposed restructuring is expected to include a Company Voluntary Arrangement, refinancing of existing debt facilities and significant cost reductions.
Existing lenders have indicated support for the administration process, while Headlam said its other trading subsidiaries are currently unaffected.
The current management team will remain in place under the supervision of the administrators.
Chairman Stephen Bird and independent non-executive director Nick Kelsall will step down from the board when the administrators are appointed.
If the restructuring is completed, current non-executive director Wilf Walsh is expected to become chairman. Walsh previously served as chief executive of Carpetright between 2014 and 2021.
Headlam said it intends to seek restoration of its suspended stock market listing following a successful restructuring and transition to a reconstituted board.
