Telford trade counter closes as administrators appointed to Headlam
Floor covering firm has shed more than 150 jobs as administrators strive to save the business
A trade counter has closed in Shropshire after a floor covering firm fell into administration.
Headlam's base on Stafford Park, Telford, has shut down as part of the process which has seen 154 jobs lost so far across the firm's UK operations.
Two other West Midlands trade counters - in Coventry and Stoke - have also closed but administrators have not specified how many jobs have been lost at each location.
Headlam is based in Coleshill east of Birmingham and was founded in 1992.
It is a distributor of floor coverings and serves flooring manufacturers and suppliers across the UK and Europe in both the residential and commercial sectors.
The business employs more than 1,300 people across its head office, 17 distribution branches and 76 trade counters prior to the administration.
Will Wright, Chris Pole and Ryan Grant, from financial services firm Interpath, were appointed joint administrators to Headlam Group plc and its trading subsidiary HFD Ltd this week.
They are continuing to trade the business while a restructuring of its operations is implemented which is expected to include a company voluntary arrangement, a refinancing of Headlam's existing debt facilities and other cost reduction measures.
Interpath said these steps were intended to give the business the best opportunity possible to establish a more sustainable platform for the future but that they were contingent on receiving the ongoing support of Headlam's key stakeholders.
As part of the immediate cost reduction measures being taken, 28 trade counters have closed with immediate effect but the remaining 17 distribution centres and 48 trade counters will continue trading.
Mr Wright said: "Headlam is a well-established British company with a heritage stretching back more than 30 years and the feedback we've received from customers and suppliers in recent days reinforces that there remains market demand for the business.
"Unfortunately, the group has not been immune to recent economic challenges, including cost inflation and fragile consumer confidence, which over time have placed significant pressure on the business.
"Our immediate priority is to those employees whose roles have been lost as a result of the site closures. 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 stakeholders…we believe the proposed plan provides a credible path to stabilising the business."
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