Floor coverings distributor Headlam Group has provided an update on its strategic review, which was launched earlier this year in a bid to improve its financial position, as trading “continues to be challenging”.
Despite tough trading conditions, the company said revenues throughout July 2026, to date, have been ahead of the performance seen in June by approximately 3.5 per cent.
As previously announced, the board, together with its advisors, is undertaking a full strategic review, “at pace”, of potential options to improve the group’s financial position.
The company “continues to progress a review of its options” which includes, but is not limited to, further support from its existing lenders, further property disposals, a wider group refinancing, new partnerships and other broader corporate actions, and the business is “finalising a plan which it is seeking to execute”.
Specifically, retaining the Coleshill headquarters as one of the Headlam’s “key freehold properties” has been determined as part of the strategic options plan, and therefore a sale and leaseback of this asset is “no longer being pursued”.
Additionally, the refinancing process for the group’s debt package has “progressed with financing offers received that would, if completed on the terms currently proposed, advance additional liquidity”.
At this stage “there can be no certainty that the group will be successful in implementing any of these options, or any alternative solution to improve the group’s financial position, within a reasonable timeframe, or at all”.
“With a strengthened balance sheet, the board believes it would be able to alleviate the current liquidity issues that are negatively impacting its ability to trade effectively and to fund and allow time to execute the strategic options plan with the aim of returning Headlam to a profitable and cash generative business as quickly as possible,” the update added.