Intention to Appoint Administrators & Suspension
Headlam Group PLC has announced its intention to appoint administrators due to an inability to execute a transformation plan amidst challenging market conditions and exhausted liquidity under its existing facility, which resulted in covenant breaches. The company has incurred and projects significant short-term losses, making administration the only viable option. Consequently, Headlam has requested the suspension of its ordinary shares from trading on the Official List and the Main Market of the London Stock Exchange, effective immediately. A notice of intention to appoint administrators is also expected for its subsidiary HFD Limited, though other subsidiaries remain unaffected.
Select text to share a quote on X · sign in to keep highlights & notes in your HEAD notes
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. THIS ANNOUNCEMENT CONTAINS PRICE SENSITIVE INFORMATION
Headlam Group plc
('Headlam', the 'Company', the 'Group')
Intention to Appoint Administrators and Suspension of Listing
Headlam (LSE: HEAD), the UK's leading floor coverings distributor, announces that, following the strategic review announced on 14 July 2026 and subsequent updates, the Board has resolved to file a notice of intention to appoint Will Wright, Chris Pole and Ryan Grant, all of Interpath Ltd, as joint administrators of the Company.
As previously announced, the Board has been pursuing a range of options to address the Group's liquidity position, including refinancing, asset disposals and other strategic alternatives. The Board has worked hard over an extended period to explore and evaluate multiple potential solutions, resulting in the preparation of a comprehensive transformation plan. Unfortunately, against a market backdrop that continues to be challenging, the Board has been unable to execute on that plan in time. As a result, the Company has now exhausted the liquidity available under its existing facility (which resulted in breaches to its month-end covenants), and ultimately the scale of the losses incurred, and projected in the short term, has made the challenge too great to overcome. Consequently, despite these extensive efforts and in the absence of other suitable alternatives, the Board considers the proposed administration to be the only viable option.
The filing of the notice of intention to appoint administrators provides a period of protection for the Group and its creditors while discussions remain ongoing with stakeholders. Unless circumstances change, and in accordance with statutory requirements, the Board intends to appoint administrators within 5 business days. A notice of intention to appoint administrators is also expected to be filed in respect of the Company's subsidiary HFD Limited. The Company's other subsidiaries are unaffected by the filing of the notices of intention in respect of the Company and HFD Limited.
In light of the above, the Company has requested that the listing of the ordinary shares of the Company on the Official List of the Financial Conduct Authority and the trading on the Main Market of London Stock Exchange be suspended from trading with effect from 7:30am today.
Enquiries Headlam Group plc Tel: 01675 433 000 Stephen Bird, Chairman Rob Barclay, Chief Executive Officer Email: headlamgroup@headlam.com Alison Hughes, General Counsel & Company Secretary Panmure Liberum Limited (Corporate Broker) Tel: 020 3100 2000 Tom Scrivens / Amrit Mahbubani Alma Strategic Communications Tel: 0203 405 0205 Rebecca Sanders-Hewett, Hannah Campbell, Anna Sutton Email: headlam@almastrategic.com Interpath Ltd Katy Broomhead / Alastair Henry Tel: 0203 989 2800 Email: katy.broomhead@interpath.com
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.