Topps Tiles has agreed to the sale and leaseback of its head office and central warehouse buildings.

The retailer, which has stores in Cirencester, Stroud, Cheltenham, Moreton-in-Marsh and Gloucester agreed the £18.1 million sale and leaseback of its Leicester head office and the warehouses to UK Warehouse Properties Limited, as reported by Retail Gazette.

Completion of the sale is expected in the next few days and will bring 29.3 per cent to the balance sheet asset value of the properties of £14 million. Proceeds from the sale are expected to strengthen Topps Tiles' financial position as it continues to respond to the coronavirus pandemic.

The company suffered a half year loss in May, after sales were hit by Covid-19. It had also endured a tough trading environment even before the pandemic.

In its update for the six months to 28th March, Topps Tiles suffered a £4 million statutory pre-tax loss, compared to a £5.2 million half-year profit in the previous year.