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Typhoo Tea has gone into administration after more than 120 years in business.
The iconic British tea brand, which has faced years of declining sales and mounting debts, filed a notice to appoint administrators on Wednesday (November 27).
Vapes and batteries maker Supreme, based in London, is in advanced talks about a potential rescue deal to acquire the firm. Supreme hopes to expand its drinks and nutrition business as part of a shift away from vaping products ahead of upcoming government regulations on disposable vapes.
Insolvency firm Kroll has been appointed to oversee the administration process, and they are working to secure a deal that could save the company, which currently employs fewer than 100 people. However, the outcome is still uncertain.
A spokesperson for Kroll said: “The company has experienced significant cash flow constraints due to supply chain disruptions and service issues. The administration process provides Typhoo Tea with protection, allowing the joint administrators to finalize the sale to rescue the business.”
Typhoo’s recent filings show it posted a £38 million loss last year, with sales dropping by a quarter to £25.3 million. In addition to its financial troubles, the company suffered a break-in at its Wirral factory in August 2023, when trespassers caused significant damage and made the site inaccessible. The factory was sold in June 2024, but the break-in led to £24 million in exceptional costs, which severely impacted operations.
Typhoo, founded in 1903, has been one of Britain’s most well-known tea brands, but its decline in recent years has led it to the brink of closure. Private equity firm Zetland Capital has been the company’s majority shareholder since 2021.
This post was originally published on here
