Headlam Group plc (LSE:HEAD) has completed the sale of selected assets to Likewise Group plc (LSE:LIKE) for £14.9 million plus VAT as part of the administration process that began in early September.
The transaction includes Headlam’s freehold distribution centre in Thatcham, associated operational assets and inventory, as well as the Crucial Trading and Concept Flooring brands.
Under the arrangements, Likewise will also act as an agent for up to nine months to assist with the sale of Headlam’s remaining inventory.
The administrators said the transaction generated a profit on disposal when compared with the relevant book values and recent valuations.
However, the joint administrators expect proceeds from the transaction and any further asset realisations to be insufficient to repay unsecured creditors in full. They therefore consider it unlikely that Headlam shareholders will receive a return of capital through the administration process.
Separately, the joint administrators intend to apply for the cancellation of Headlam’s listing on the FCA’s Official List and the cancellation of its shares from trading on the London Stock Exchange’s main market.
The administration and asset disposal process remains under the supervision of the joint administrators.
About Headlam
Headlam Group is a UK floorcoverings distributor supplying products including carpets, vinyl and other flooring materials to trade customers.
The business operates distribution facilities and has owned a portfolio of flooring brands serving the UK market.
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