UK's Headlam to delist after it collapses into administration

Headlam to Delist from London Stock Exchange Following Administration

Headlam's Delisting and Asset Sale: Key Developments

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.

Details of the Asset Sale and Administration

Here are more details:

Asset Sale to Likewise Group

• Headlam announced the sale of certain assets to rival Likewise Group for £14.9 million ($19.75 million)

Appointment of Administrators

• It comes after joint administrators from financial advisory firm Interpath were appointed, leaving shareholders expecting to receive nothing.

Strategic Review and Financial Struggles

• 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.

Company History and Rescue Efforts

• 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".

Impact on Creditors and Market

• 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.

Additional Information

($1 = 0.7545 pounds)

(Reporting by Simone Lobo in Bengaluru; Editing by Harikrishnan Nair)