About 170 jobs have been lost after a ceiling product maker fell into administration.
Zentia has collapsed.
Bosses say the Gateshead-based operator had suffered “significant headwinds” over recent months – despite a £6.5 million shareholder cash injection – as high energy prices compounded lower sales, adding its failure “is not the outcome any of us wanted”.
Administrator Interpath has been appointed to oversee the sale of business and assets from the firm’s Zentia Limited and Zentia Profiles operations, with a “small number” of staff retained.
Headquartered on Team Valley Trading Estate, the business was known for products including mineral ceiling tiles, suspension grids and floating ceiling systems.
A Zentia statement said: “It is with the utmost sadness we can confirm Zentia has been placed into administration.
“Despite our very best efforts, we were unable to find a solution which would allow us to remain trading.
“We’d like to thank customers, suppliers and our team of incredible people who worked so hard to make the business what it was.”
James Lumb, managing director at London-headquartered Interpath and joint administrator alongside Will Wright, added: “Zentia has a rich history in the North East, stretching back more than 100 years.
“It’s a tremendous shame the difficulties facing many businesses in the construction supply chain have resulted in it falling into administration.
“Our thoughts are with the companies’ dedicated staff who have been impacted by redundancy.
“We will now be seeking a sale of the companies’ business and assets, including its residual stock.”
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