A UK-based ceiling manufacturer with more than a century of history has collapsed into administration.
Zentia, based in Gateshead, has ceased production at its two sites.
A total of 170 staff have been made redundant.
Zentia Limited and Zentia Profiles, which together had a turnover of more than £50 million, produced ceiling tiles, suspension grids, and floating ceiling systems.
Will Wright and James Lumb of Interpath were appointed joint administrators yesterday.
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”, according to ConstructionEnquirer.com
He continued: “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.”
Administrators are now seeking a buyer for the company’s business and assets, including remaining stock.
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Zentia had been facing challenging trading conditions, including high energy prices and lower-than-expected sales.
In an effort to stabilise the business, there was a cash injection by the shareholder of £6.5 million last year and options for sale were explored.
When no solvent options could be found, the company was placed into administration.
Interpath has encouraged any interested parties to come forward to discuss purchasing the business and its assets.
1 in 3 employers likely to make staff redundant by next year
One in three employers are likely to make staff redundancies by the start of next year.
The findings come from a survey of 1,000 businesses by conciliation service Acas, which also revealed that larger employers are more likely to lay off staff than smaller firms.
Kevin Rowan, director of dispute resolution at Acas, told PA: “The results of our poll reveal that a third of businesses are considering redundancies by the start of next year.
“Organisations should look at all possible alternatives to redundancies first, but if employers conclude they have no choice, then they have legal requirements they must follow.
“This means they must consult with staff early to seek their views, or risk being subject to a costly legal process.”
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