The appointment has resulted in around 170 redundancies. Production at the companies’ two Gateshead sites has ceased, with the majority of the workforce let go. A small number of staff have been retained to assist the administrators in their duties.

The manufacturer of acoustic ceiling solutions had faced challenging trading conditions, including the impact of high energy prices on production costs and lower-than-forecast sales – pressures common across the building and construction supply chain.

The directors had taken steps to address the position, including a £6.5 million cash injection by the shareholder last year, and later explored a sale. With no solvent outcome available, they took the decision to place the companies into administration.

Mr 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.”