Typhoo Tea falls into administration after 121 years

Typhoo Tea has entered administration after more than a century of operation, marking the end of its 121-year history.

The company Supreme, known for producing vapes and batteries, has announced that it is discussing a possible rescue deal to acquire Typhoo. Typhoo recently submitted a notice to appoint administrators, as indicated in official documents filed on Wednesday.

The downfall comes after numerous years of falling sales, increasing debts, and even a burglary at its factory in Wirral last year.

Experts in insolvency from Kroll have been assigned to manage the administration of the company and are aiming to negotiate a plan to save the business, which reportedly has under 100 staff members.

Supreme, a vaping products and beverages manufacturer listed in London, informed its shareholders on Thursday that discussions regarding a potential rescue are progressing well, although there’s no guarantee that a deal for acquisition will ultimately be finalized.

This initiative is part of Supreme's strategy to expand its beverage and nutrition business while shifting away from vaping, especially in light of an impending government crackdown on disposable vapes set for next year.

A representative from Kroll stated, "As mentioned in recent reports, the company has faced serious cash flow challenges due to problems in the supply chain and the resulting issues in service."

The company has been looking into selling its business and assets, and this process is nearing completion.

"The administration process offers Typhoo Tea a safeguard, enabling the joint administrators to complete the sale and save the business."

Typhoo's recent financial reports revealed that the company experienced a loss of £38 million last year, with sales declining by 25% to £25.3 million.

In August 2023, Typhoo faced a setback when intruders broke into their old factory in Merseyside and took over the premises for several days. At that time, Typhoo reported that the break-in resulted in significant damage and rendered the site "unusable."

The company had been working to sell the factory, and the agreement was finalized in June 2024.

Typhoo stated that the incident accounted for the majority of the £24 million in extraordinary expenses for that year, significantly impacting its daily operations.

Established in 1903, Typhoo has been a prominent tea brand in Britain for many years. However, its recent struggles have brought it close to the edge of shutting down.

Since 2021, the private equity company Zetland Capital has held the majority stake in the company.