Around 170 jobs have been lost at a historic Gateshead group that can trace its roots back more than 100 years after administrators were appointed following financial struggles. Zentia, which won the Made in Britain Award at the North East Business Awards in 2023, has ceased production at its two plants in Gateshead, where it manufactured suspended ceilings for distributors, contractors, architects and interior designers across the UK.
Challenging conditions in construction sector
The company, formerly known as Armstrong Ceiling Solutions before being renamed after acquisition by a German asset manager, had been battling challenging trading conditions. High energy prices on production costs and lower-than-forecast sales severely impacted the business. Despite a £6.5m cash injection from shareholders last year and exploring sale options, no solvent outcome was possible, leading to the appointment of joint administrators Will Wright and James Lumb from Interpath.
Administrators' statement
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 so it's a tremendous shame that the difficulties facing many businesses in the construction supply chain have resulted in it falling into administration. First and foremost, our thoughts are with the companies' dedicated staff who have been impacted by redundancy. As a matter of priority, our teams will be providing support to them over the coming days.'
Production at both sites has ceased, and the majority of the workforce has been made redundant. A small number of staff have been retained to assist the administrators. The joint administrators are now seeking a sale of the companies' business and assets, including residual stock. Interested parties can contact the administrators via zentia@interpath.com.
Historical significance and recent investments
Five years ago, the Team Valley tile group, which also featured in lists of the Top 200 North East's largest companies, was creating jobs by bringing manufacturing processes in-house thanks to a £12m finance facility. The firm supplied mineral fibre tiles and grids for suspended ceilings to offices, schools and hospitals, and was involved in high-profile projects such as the transformation of Harton Technology College in South Shields and the renovation of Kings Church in Amersham.
The loss of 170 jobs marks a significant blow to the local economy, with administrators now working to support affected employees and find a buyer for the business.
