Headlam Cancels Listing of Shares and Sells £14.9m of Assets to Likewise Group

Following the appointment of Will Wright, Chris Pole and Ryan Grant as joint administrators to Headlam Group plc and its trading subsidiary HFD Limited on 8th September 2026, the business continued to trade while a partial restructuring of the business and an exploration of options were conducted, including the possibility of exiting administration through a Company Voluntary Arrangement together with a broader restructuring of the Group’s debt. As that work has progressed, and despite also exploring a sale of the whole of the trading business in a single transaction, the Group reports that it has become clear a sale of certain parts of its business and assets represents the best and most deliverable outcome for creditors, and that the Administration Exit is no longer a tenable option for the company, acting by the Joint Administrators.

Consequently, on 6th October Headlam completed the sale of certain assets to Likewise Group plc for aggregate consideration of £14.9 million (plus VAT). This includes:

• Its freehold interest in the 90,000 sq. ft. Thatcham distribution centre
• Certain operational assets and inventory including assets and certain inventory in Thatcham
• The trade and assets of Crucial Trading and the trade and assets of Concept Flooring in West Bromwich and Stoke-on-Trent
• Principal intellectual property

Likewise has also entered into an agency agreement with the company to assist the Joint Administrators during the next nine months to sell the Group’s remaining inventory in an orderly manner so as not to disrupt the UK floorcoverings market.

Following completion of this sale and a review of the company’s retained affairs and the realisation of available assets, it has assessed it is unlikely that the funds secured from the disposal and any further realisation event(s) will be sufficient to meet the claims of the unsecured creditors in full. Consequently, it is unlikely that there will be any return of capital to the shareholders of the company.

In light of the above and pursuant to Listing Rule 21.3.5R, the Joint Administrators reported intention to apply to the Financial Conduct Authority (FCA) for the listing of the company’s ordinary shares on the Official List of the FCA to be cancelled and the shares to cease to be admitted to trading on the main market for listed securities of the London Stock Exchange plc. A further announcement in relation to the Cancellation is expected to be published in due course.

www.headlam.com