Gateshead based Zentia Limited and Zentia Profiles had a combined turnover of more than £50m.

Will Wright and James Lumb from Interpath were appointed joint administrators to both businesses yesterday.

The firms were market leading manufacturers of complete acoustic ceiling solutions, including mineral ceiling tiles, suspension grids, and floating ceiling systems.

Interpath said 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 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.

But with no solvent outcomes available, the directors took the decision to place the company into administration and production at the companies’ two sites in Gateshead has ceased with the majority of the workforce made redundant.

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.”