HEADLAM GROUP

After its credit lines were exhausted, Headlam Group has been placed into insolvency administration with Interpath Advisory appointed to stabilise operations and customer service. Will Wright, Chris Pole and Ryan Grant are to lead a comprehensive restructuring that includes a Company Voluntary Arrangement, refinancing of liabilities and cost reductions. Management remains in place, certain non-executive directors have stepped down, and lenders have signalled their support; relisting on the stock exchange is planned after a successful restructuring. » Mere på de.investing.com

The board of Headlam Group has applied for the appointment of Interpath Ltd as joint administrators; Will Wright, Chris Pole and Ryan Grant are to take the roles. A corresponding application was also made for subsidiary HFD Limited, while other subsidiaries remain unaffected. The company says it has exhausted available liquidity under its credit facility and breached lending covenants; losses and a transformation and refinancing strategy that could not be implemented in time forced the step. The ordinary shares are to be suspended from trading and the official list, and the administrators are expected to be appointed within five business days unless the situation changes. » Mere på de.investing.com

Headlam reported an increase in net debt in the first half from £31.4m to £36.2m and launched a strategic review. Revenue fell 22.8% to £188.8m, and operating profit worsened year on year. Declining low-margin sales, a weak market environment, product availability issues and unusually warm weather were cited as reasons. » Mere på de.investing.com