Headlam sell-off leaves hundreds of jobs at risk

By the Editorial Team · Thursday, October 29, 2026

Headlam, a long-established Birmingham flooring company, sold its final two subsidiaries—Domus Tiles and Melrose Interiors—through management buyouts that retained 257 jobs while leaving most of its workforce redundant. These sales mark the end of Headlam’s administration process following its collapse due to declining revenue and mounting debts, resulting in the company’s delisting from the London Stock Exchange.

The final two subsidiaries of Headlam, a Birmingham-based flooring company with origins dating back to the 1940s, have been sold in transactions that preserve 147 jobs but leave the majority of its original workforce at risk of redundancy. Headlam entered administration in September due to weakened demand and inflationary pressures, including rising energy costs, leading to its shares being delisted from the London Stock Exchange.

Following the company’s collapse, administrators from Interpath sought to restructure the business through a company voluntary arrangement, which ultimately did not succeed. Subsequently, they have been overseeing the sale of the company’s assets. Earlier this month, Interpath completed a £14.9 million deal transferring ownership of Headlam’s distribution centre in Berkshire and other assets to Likewise, a Birmingham-based flooring distributor.

On Tuesday, Interpath announced pre-pack sales for Headlam’s remaining subsidiaries. Domus Tiles, a specialist in tiles and flooring, was acquired through a management buyout by its existing leadership team. Melrose Interiors, a rug manufacturer, was sold to the Jain family group, known for their UK distribution businesses. Financial details of these transactions were not disclosed. Combined, these deals have secured 257 positions, but approximately 830 employees have been made redundant since the administration process began.

Headlam was listed on the FTSE All-Share index prior to its administration, with a market capitalization in the tens of millions during its last year of operation. For the six months ending June 30, the company reported revenue of £188.8 million from continuing operations—a decline of nearly 25 percent—alongside substantial operating losses and debts totaling £36 million.

The company’s challenges were compounded by an activist investor, First Seagull, which unsuccessfully attempted to replace board members while warning of a rapid decline under previous management.

Chris Pole, managing director at Interpath, described the recent sales as preserving two “successful and highly respected parts” of the Headlam group, though the majority of the company’s employees have nonetheless faced redundancy. Originally listed in London in 1948, Headlam had expanded over the decades into markets including the Netherlands and France before its recent collapse.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.