Historic tea brand Typhoo Tea is currently in administration due to severe financial difficulties.
- Typhoo Tea, marking its 120th anniversary, has experienced declining sales and profits.
- The company’s revenue recently fell to £25.33m from £33.67m the previous year, with significant operating losses.
- Administrators are exploring options to sell the business, with Supreme Imports plc as a potential buyer.
- The brand’s operations were further impacted by a factory closure, vandalism, and supply chain issues.
Typhoo Tea, a well-established name in the tea industry, is confronting substantial financial difficulties leading to its decision to enter administration. Experts have been appointed to oversee the process and seek a viable buyer for its business and assets.
Over the past year, Typhoo has seen a concerning drop in both sales and profitability. The company’s revenue decreased from £33.67 million in the fiscal year 2022 to £25.33 million, while its operating loss widened dramatically from £5 million to £31.651 million.
In response to these challenges, the company has enlisted the services of Phil Dakin, Janet Burt, and Benjamin Wiles of Kroll. They are tasked with managing the sale process which is nearing its conclusion, according to reports. It is believed that Supreme Imports plc, known for distributing batteries and lighting, as well as producing e-liquids for vapes, is the leading candidate for acquisition.
In an official statement, Kroll noted, “The administration process provides Typhoo Tea with protection, allowing the Joint Administrators to finalise the sale in order to rescue the business.” This indicates a strategic step towards stabilising the company’s precarious situation.
The closure of Typhoo’s Moreton factory in Merseyside last year resulted in the loss of 90 jobs, with only about 20 positions remaining. This was part of a broader restructuring effort that included plans to sell or relocate factory equipment and divest the site itself.
Compounding these operational difficulties, a group of trespassers caused extensive damage to the Moreton site last August. This incident severely damaged essential machinery and rendered stock unusable, further delaying the site’s sale until it was completed this June.
Furthermore, Typhoo has contended with a shortage of tea paper, which has hindered its ability to meet customer demands despite a strong market interest. The company pursued a £4.72 million insurance claim to address the losses from the trespassing event and listed £24.1 million in exceptional costs related to it.
Following the site’s closure, Typhoo relocated its registered office from Birkenhead to Bristol, as part of its ongoing operational adjustments. Since 2021, the company has been majority-owned by Zetland Capital.
Typhoo Tea’s future now hinges on the successful completion of the administration process and potential sale.
