Acoustic ceiling manufacturer Zentia has entered administration, resulting in the loss of 170 jobs, with its Gateshead-based entities Zentia Limited and Zentia Profiles previously generating a combined turnover of more than £50 million.
Announcing the news, they said: “It’s with the utmost sadness that we can confirm that, Zentia was placed into administration. The business has faced significant headwinds over recent months, and, despite our very best efforts, we were unable to find a solution which would allow us to remain trading.
“We’d like to thank our customers, suppliers, and most of all, our team of incredible people who worked so hard to make the business what it was. This is not the outcome any of us wanted.”
Will Wright and James Lumb from Interpath were appointed joint administrators to Zentia Limited and Zentia Profiles Limited on 8 June 2026.
In common with a number of other companies operating across the building and construction supply chain, the Companies had experienced challenging trading conditions recently, including the adverse impact of high energy prices on production costs, coupled with sales lower than forecast.
In response, the directors of the business took various steps to address the Companies’ financial position, including a cash injection by the shareholder of £6.5m last year, and later, exploring options for sale. However, with no solvent outcomes available, the directors took the difficult decision to place the company into administration.
Following the appointment of the joint administrators, production at the Companies’ two sites in Gateshead has ceased and, with regret, the majority of the workforce has been made redundant (circa 170 redundancies in total). A small number of staff have been retained by the joint administrators to assist them in their duties.
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.
“Additionally, we will now be seeking a sale of the Companies’ business and assets, including its residual stock, and would encourage any interested parties to make contact with us as soon as possible.”
Interested parties should contact the administrators via zentia@interpath.com
If you have been affected by collapse of Zentia, The Money Advice Trust is available to support individuals to prevent financial difficulty and remove problem debt from people’s lives. More details and how to access advice is given below.
About the Money Advice Trust
- The Money Advice Trust is a charity which helps prevent financial difficulty and removes problem debt from people’s lives.
- The charity runs National Debtline and Business Debtline, providing free, impartial and expert advice by phone, webchat and online.
- National Debtline: 0808 808 4000 | www.nationaldebtline.org
- Business Debtline: 0800 197 6026 | www.businessdebtline.org
Trade body FIS is working with its lawyers to establish guidance for the supply chain, and will publish this as soon as possible.
They have also published some guidance on what action businesses could take if they are affected by this closure.
