A 100-year-old ceiling parts manufacturer, owned by private equity since 2020, has gone under, causing the loss of 170 jobs.
Gateshead-based Zentia, which was founded as Armstrong Cork Company in August 1925, and its subsidiary Zentia Profiles, previously known as Filesymbol and Worthington Armstrong UK, went into administration yesterday (8 June).
A statement from insolvency specialist Interpath said the firms were hit by challenging trading conditions including the adverse impact of high energy prices on production costs and lower-than-forecast sales.
While trying to save the business, company directors secured a shareholder cash injection of £6.5m last year and then explored options for sale, the statement added.
“However, with no solvent outcomes available, the directors took the difficult decision to place the company into administration,” it said.
Latest published accounts for Zentia, which focused mainly on ceiling tiles, showed it turned over £48m in the year to 31 December 2024, down from £54.7m in 2023.
It made a pre-tax loss of £2.6m in the period.
Zentia Profiles, which focused on manufactured metal ceiling grids, generated revenue of £6.4m and a pre-tax profit of £51,867.
Armstrong Cork Company became Armstrong World Industries in 1980.
In 2019 it sold its EMEA and Pacific Rim business to Knauf but a European Commission ruling meant the multinational was required to carve out the UK business, which became known as Ceiling Solutions.
It was subsequently sold to Aurelius, the German private equity firm that owned SSE Contracting from 2021-2024, and renamed Zentia.
Interpath managing director James Lumb said: “Zentia has a rich history in the North East, stretching back more than 100 years, 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.”
He added that the administrators will be looking to sell the companies’ business and assets, including residual stock, and appealed for interested buyers to get in touch.
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