Typhoo Tea is on the verge of collapse and is preparing to call in administrators, after a year of setbacks and sagging sales.
The move puts more than 100 jobs at risk.
The British tea brand filed a court notice on Friday to bring in adminstrators to explore rescue options, following several years of piling debts and a significant break-in at its Wirral factory.
Typhoo’s losses stretched to £38m in 2023 and sales slumped by a quarter to £25.3m.
The company suffered a devastating blow in August 2023, when a group of trespassers raided the company’s Merseyside factory, causing “excessive damage” and occupying the building for several days, Typhoo said.
Even once they regained access to the site, Typhoo said the break-in “materially” affected their day-to-day business and made up the bulk of that year’s £24 million exceptional costs.
Typhoo sold the Merseyside site in June 2024.
Typhoo told ITV News on Friday that they have an “intention to appoint administrators”.
Typhoo “is not in administration, and this action has been taken to enable TTL [Typhoo Tea Limited] to pursue a sale of the business,” the company added.
The brand told ITV News that they would release more information “in due course”.
Since 2021, the brand has been majority-owned by private equity firm Zetland Capital.
Former head of Burts Crisps, Dave McNulty, came in as Typhoo’s new CEO in just October.
Typhoo has been in business for more than 120 years – since 1903.
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