Flooring company Headlam has cut 154 jobs after falling into administration.
The Birmingham-based business stated it has also closed 28 trade counters – stores based within factories to sell products to tradespeople – across the UK as a result.
Administrators from advisory firm Interpath were appointed on Tuesday, but the company said it will continue trading while a restructuring takes place.
Headlam, which currently maintains a workforce of around 1,300 workers, will undertake a Company Voluntary Arrangement (CVA) restructuring, closing more than a third of its 76 trade counters.
The remaining 17 distribution centres and 48 trade counters will remain open, it said.
Administrators said the business will also launch a refinancing of its debt facilities and cost reduction measures in order to help make its finances “sustainable” for the longer term.
Headlam, which specialises in floor coverings, saw its shares suspended at the start of September after warning that it expected to hire administrators due to a shortage of liquidity.
The administrators said the firm was knocked by recent economic challenges, including cost inflation and fragile consumer confidence.
On Wednesday, Will Wright, UK chief executive at Interpath and joint administrator to Headlam Group, said: “Our immediate priority is to those employees whose roles have been lost as a result of today’s site closures.
“We understand this is devastating news and we are committed to ensuring that everyone impacted receives the support and information they need as quickly as possible.
“For the rest of the business, our focus is on implementing a restructuring that will give Headlam the best chance possible of recovery.
“Subject to the ongoing support of the group’s key stakeholders, including customers and suppliers, we believe the proposed plan provides a credible path to stabilising the business.”
