Headlam to delist after administration, sells assets to Likewise
Britain's flooring distributor Headlam said it intends to delist and sell parts of its business after administration, due to weak demand and rising costs.
Oct 7 (Reuters) — Britain's Headlam on Wednesday said it intends to cancel its London listing and sell certain parts of its business, after weak demand and rising material and energy costs pushed the flooring distributor into administration. Headlam did not say when the delisting would take effect. The stock last traded at 11 pence on September 1, after the company announced intention to appoint the administrators. 75 million) It comes after joint administrators from financial advisory firm Interpath were appointed, leaving shareholders expecting to receive nothing.
The carpet-maker, which initiated a strategic review in July, has been pummelled by falling sales and rising costs for chemicals used to make synthetic carpets, in the fallout from the Iran war. The company, which listed as Headlam, Sims & Coggins in London in 1948, said administrators had explored several rescue routes, but ultimately decided a piecemeal sale of certain assets was the "best and most deliverable outcome for creditors". However, the sale is unlikely to meet the claims of unsecured creditors in full, the company said.
Likewise entered a nine-month agency agreement to help administrators sell Headlam's remaining inventory in an orderly fashion to avoid disrupting the UK flooring market. com, +919920570373)