8 September 2026

Headlam Group plc

('Headlam', the 'Company', the 'Group')

Appointment of Administrators, Trading Update and Directorate Changes

Highlights

·    Continued trading while the restructuring is carried out

·    Administration process provides the statutory protection and time needed to pursue the restructuring plan

·    Subject to successful completion of the restructuring, the Company intends to seek the restoration of its suspended listing

Appointment of Administrators

Further to the announcement on 1 September 2026, the Board of Headlam Group plc confirms that Will Wright, Chris Pole and Ryan Grant of Interpath Advisory will be appointed as joint administrators to Headlam Group plc and HFD Limited later today, once confirmed in court.

The objective is to stabilise operations and maintain service for customers whilst engaging directly with suppliers and other stakeholders to attempt to implement a comprehensive restructuring of the Group.

Trading Update

Following the appointment of the administrators, the joint administrators intend to keep the business trading while a restructuring of the Group's operations is implemented.

As previously announced, the Board had been undertaking a strategic review which pursued a range of options to address the Group's liquidity position, resulting in the development of a comprehensive transformation plan.

However, given the scale of losses incurred over recent years and the exhaustion of liquidity under the existing Group's existing facilities, the Company was unable to implement the transformation plan within the constraints of its funding position. The administration provides the statutory protection and time required to pursue the restructuring.

The proposed restructuring is expected to include a Company Voluntary Arrangement (CVA) and a refinancing of the Group's existing debt facilities, alongside significant cost reduction measures. These steps are intended to give the business the best opportunity to trade through its current challenges and establish a more sustainable platform for the future but are subject to how discussions with key stakeholders progress in the coming days.

The Group's existing lenders have indicated their support for the proposed administration.

The current management team will remain in place during the administration, operating under the direction and supervision of the joint administrators. The Company will keep employees, customers and suppliers informed as the process progresses.

The Group's other trading subsidiaries currently remain unaffected by the proposed appointment of administrators to Headlam Group plc and HFD Limited.

Directorate Changes

Upon the appointment of administrators, Stephen Bird, Non‑Executive Chairman, and Nick Kelsall, independent Non-Executive Director and Audit Committee Chair, will both step down from the Board.

Conditional on the successful implementation of the restructuring, Wilf Walsh, current Non‑Executive Director, will assume the role of Non‑Executive Chairman. Wilf served as Chief Executive Officer of Carpetright from 2014 to 2021 and then as Chair of parent company Nestware Holdings until his retirement in 2022.

Subject to the successful completion of the administration and restructuring, the intention would be to seek the restoration of the listing and transition to a reconstituted Board.

Further announcements will be made as appropriate.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the publication of this announcement, this inside information is now considered to be in the public domain. The person responsible for arranging the release of this announcement on behalf of the Company is Rob Barclay, Chief Executive Officer.