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A flooring firm has cut 154 jobs after going into administration.<\/b><\/p>\n
Birmingham-based Headlam said it had also closed 28 of its 76 trade counters, but that it would continue to trade while a restructuring takes place.<\/p>\n
The company, which currently employs around 1,300 workers, said it will undertake a Company Voluntary Arrangement restructuring.<\/p>\n
The administrators said the firm had been affected by a number of economic challenges, including cost inflation and fragile consumer confidence.<\/p>\n
Headlam saw its shares suspended at the start of September after warning that it expected to hire administrators due to a shortage of liquidity.<\/p>\n
It called in administrators on Tuesday and said its remaining 17 distribution centres and 48 trade counters would remain open.<\/p>\n
The administrators also said the business would launch a refinancing of its debt facilities and cost reduction measures in order to help make its finances “sustainable” for the longer term.<\/p>\n
Will Wright, UK chief executive at Interpath and joint administrator to Headlam Group, said: “Our immediate priority is to those employees whose roles have been lost as a result of today’s site closures.”<\/p>\n
He said he understood it would be “devastating news” for those affected.<\/p>\n
But he also said: “We believe the proposed plan provides a credible path to stabilising the business.”<\/p>\n<\/div>\n