UK'S Headlam drops HQ sale plan, presses on with refinancing

July 31 (Reuters) - Britain's Headlam Group said on Friday it had decided to retain its Coleshill headquarters, abandoning an earlier plan to sell and leaseback the property as the floor coverings distributor pressed ahead with a strategic review to shore up its finances. 

Here are some more details:

• The carpet maker has been suffering through declining revenue, continued losses and negative cash flow, alongside a weakening balance sheet — a precarious position that has forced the Coleshill-based company to race through a range of options to avoid a deeper financial crisis.

• Headlam launched the review earlier this month after it logged a sharp drop in first-half revenue and wider operating losses, weighed down by weak market conditions and supply constraints.

• It said on Friday that while trading continued to be challenging, revenue so far in July was running about 3.5% ahead of June.

• Headlam added that its debt refinancing process had advanced, with financing offers received that would, if completed on the terms currently proposed, provide additional liquidity to the group, though it cautioned there could be no certainty any option would be successfully implemented.

(Reporting by Yamini Kalia in Bengaluru; Editing by Nivedita Bhattacharjee)