Team Valley manufacturer Zentia has collapsed into administration, resulting in 170 job losses. The company, which operates two sites in Gateshead, was a former winner of the North East Business Awards.
Administration Details
Zentia, formerly known as Armstrong Ceiling Solutions until a rebranding in 2020 following its acquisition, manufactures ceilings for contractors, architects, and interior designers across the UK. The firm's two companies—Zentia Limited and Zentia Profiles—have faced challenging trading conditions, exacerbated by high energy prices impacting production costs and lower-than-forecast sales.
Will Wright and James Lumb of Interpath have been appointed joint administrators. In response to the deteriorating situation, the company's directors took measures to stabilize finances, including securing a £6.5 million capital injection from shareholders last year and exploring potential sale options. However, no solvent resolution was available, leading to administration.
Impact on Workforce
Production at both Gateshead sites has ceased, and the vast majority of the workforce has been made redundant, leaving approximately 170 employees without jobs. A small number of staff have been retained to assist administrators.
James Lumb, managing director at Interpath and joint administrator, said: "Zentia has a rich history in the North East, stretching back more than 100 years, and it's a tremendous shame that difficulties facing many businesses in the construction supply chain have resulted in administration. First and foremost, our thoughts are with the companies' dedicated staff who have been impacted by redundancy. Our teams will be providing support to them over the coming days."
Future Prospects
Administrators are seeking a sale of the companies' business and assets, including residual stock. Interested parties are urged to contact zentia@interpath.com.
Just five years ago, Zentia was creating jobs by bringing manufacturing processes in-house, backed by a £12 million finance facility. The company supplied mineral fibre tiles and grids for suspended ceilings to offices, schools, and hospitals, and contributed to projects such as Harton Technology College in South Shields and Kings Church in Amersham.
