Published 14 days ago • loading... • Updated 13 days ago

169-year-old manufacturing firm falls into administration making all staff redundant

UK-Based ceiling manufacturer Zentia collapsed into administration, ceasing production at its two Gateshead sites. This development resulted in 170 staff redundancies for the company.
Despite a £6.5 million cash injection from shareholders last year, Zentia faced challenging trading conditions, including high energy prices and lower-than-expected sales. No solvent options were found before the company entered administration.
Addressing the firm's history, James Lumb, managing director at Interpath, said, "Zentia has a rich history in the North East." He noted that construction supply chain difficulties ultimately forced the firm into administration.
Seeking a buyer for the business and remaining assets, administrators are evaluating all options. Lumb added, "First and foremost, our thoughts are with the Companies’ dedicated staff."
A survey by Acas revealed that one in three employers are likely to make redundancies by next year. Kevin Rowan, director of dispute resolution at Acas, warned that Organisations risk being subject to a "costly legal process.

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