Closures in 2025 caused shockwaves and lost jobs

MORE than 1,000 jobs were lost - with hundreds more still at risk - in 2025, when a number of North East businesses went to the wall.

- COREENA FORD Business writer [e-mail] @Scoopford

American owners of Union Electric sparked outrage with a move which negated a deal struck with unions over redundancy payements following its closure

Rising costs, drops in demand and the impact of US tariffs were keenly felt at some companies which called in administrators or announced major restructures. Here are some of the biggest losses felt across the region this year:

More than 340 jobs were lost when Cramlington construction company Merit and a number of its subsidiaries went into administration in November.

The firm - a former North East Company of the Year - was one of the UK’s leading modular building companies, having worked on a series of major UK healthcare and business projects.

At the time of its collapse, Merit was building the new £35m Berwick Infirmary, in Northumberland, but a new interim contractor has since been appointed.

James Lumb and Will Wright from Interpath are now joint administrators to Merit Group Services Limited, and Merit Health Limited and Merit Holdings Limited last month, citing contractual issues and delays to a number of its major contracts, which then had a significant impact on cashflow.

Around 350 North East jobs remain at risk in Peterlee after Tokyo-based NSK announced it had launched a consultation to close its NSK Bearing and AKS Precision Ball sites in Peterlee as part of “structural reforms”.