Gateshead-based Zentia Limited and its subsidiary Zentia Profiles have entered administration after experiencing significant financial challenges. The companies, recognized for their expertise in acoustic ceiling solutions, reported a combined turnover exceeding £50 million.
Zentia Ceiling Specialist Enters Administration
Joint administrators Will Wright and James Lumb from Interpath were appointed to manage the administration process. The brands were leaders in manufacturing essential products such as:
- Mineral ceiling tiles
- Suspension grids
- Floating ceiling systems
Recent trading conditions have posed considerable difficulties for the firms. Rising energy costs have negatively affected production expenses, combined with sales that fell below expectations.
Financial Efforts and Administration Decision
In an attempt to rectify the financial situation, the directors implemented several measures. Last year, they secured a cash injection of £6.5 million from shareholders and began exploring potential sale options. However, these efforts did not yield any viable solutions, leading to the decision to place both companies into administration.
As a result, production has halted at their Gateshead facilities, and a majority of the workforce has been made redundant. James Lumb emphasized the historical significance of Zentia in the North East, noting its legacy spans over a century. He expressed regret over the company’s downfall, affected by challenges within the construction supply chain.
Next Steps and Support for Employees
Administrators are now focused on finding a buyer for the companies’ business and assets, which includes any remaining stock. They encourage interested parties to get in touch promptly.
James Lumb also highlighted their commitment to supporting the employees impacted by the recent redundancies in the days ahead.
