Headlam, the Birmingham-based flooring distributor, has entered administration and confirmed it will cut 154 jobs as part of the process. The company has also closed 28 trade counters across the UK, with staff at those sites among those affected by the redundancies.
154
Jobs lost as Headlam enters administration ---
The business had been one of the UK's leading flooring specialists, supplying a wide range of floor coverings to trade customers through its network of distribution centres and trade counters. Its collapse marks a significant moment for the sector, removing a substantial wholesale operation from the market.
Administration means an insolvency practitioner has taken control of the company with the aim of achieving the best possible outcome for creditors. For employees, this triggers specific statutory rights around redundancy pay, notice pay, and arrears of wages, particularly where the company cannot meet those obligations itself. Affected workers may need to claim through the Redundancy Payments Service operated by the Insolvency Service.
The closure of 28 trade counters alongside the job losses suggests the business has already ceased meaningful trading at those sites, which can affect employees' entitlement to a consultation period and the timing of any payments owed.
Why this matters if you're facing redundancy
If you have been told your role is at risk because Headlam has entered administration, the first thing to understand is that administration changes some of the normal rules around redundancy. Your employer may not be able to pay your redundancy pay, notice pay, or any wages or holiday pay owed to you directly. In that case, you can claim up to statutory limits through the Redundancy Payments Service via the government's Insolvency Service. It is worth gathering your payslips and contract now, because you will need them to support your claim.
The second question worth asking is whether a proper collective consultation process took place before you were dismissed. With 154 roles affected across the UK, the legal minimum consultation period for large-scale redundancies should apply, though administrators sometimes move quickly and consultation can be compressed. If you feel the process was not followed correctly, a trade union representative or an employment solicitor who offers a free initial consultation can help you understand whether you have a claim for a protective award, which can be worth up to 90 days' pay.
Because 100 or more roles are affected, your employer should be running a collective consultation lasting at least 45 days before any dismissal takes effect. These thresholds apply per establishment, so the exact position depends on how the cuts are spread across sites.
Check what you're owed →FairEnough is not a law firm and does not provide legal advice. Always seek independent legal advice before signing any documents. Information shown is for general guidance based on UK statutory entitlements.
