Zentia Collapses Into Administration With 170 Job Losses, June 09

Zentia Limited and Zentia Profiles Limited, market leaders in acoustic ceiling solutions, entered administration on June 8, 2026, after more than 100 years in business. Joint administrators Will Wright and James Lumb from Interpath were appointed to the two Gateshead-based companies. The collapse cost 170 jobs and reflects mounting pressure on UK construction suppliers facing high energy costs and weak demand.

How the Manufacturer Hit a Wall

Zentia manufactured complete acoustic ceiling solutions, including mineral ceiling tiles, suspension grids, and floating systems. The company had combined turnover exceeding £50 million. High energy prices crushed production costs, while sales fell below forecast. The shareholder injected £6.5 million last year to stabilize the business, and directors explored sale options. With no solvent outcomes available, administration became the only path forward.

Workforce and Immediate Impact

Production at both Gateshead sites ceased immediately after the administration appointment. Approximately 170 employees were made redundant. A small number of staff were retained by the joint administrators to assist with duties. The redundancies hit a company that had won the Made in Britain Award at the North East Business Awards in 2023.

Wider Construction Supply Chain Stress

Zentia’s collapse reflects broader challenges facing UK construction suppliers. The sector has battled challenging trading conditions driven by high energy prices and weak sales. Joint administrators appointed to Zentia are now seeking a sale of the business and assets, including residual stock. The company’s collapse underscores how cost pressures are forcing historic manufacturers out of the market.

Final Thoughts

Zentia’s administration marks the end of a century-old ceiling manufacturer brought down by energy inflation and weak construction demand. The 170 job losses signal continued stress in the UK building supply chain, with more failures likely if cost pressures persist.

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