Typhoo Tea goes into administration after more than 120 years

Typhoo Tea, the iconic British brand with over 120 years of history, has entered into administration. On Wednesday, official records indicated that the beverage giant initiated administrative proceedings by filing a notice. This development comes on the heels of several challenging years, including falling sales, escalating debts, and even a burglary at their Wirral factory last year.

Specialists from Kroll have stepped in to manage the administration process, with hopes set high on securing a deal to save the company. It's noted that currently, the business employs less than a hundred people. Supreme, a London stock market player dealing in vaping products and beverages, announced to its investors on Thursday that rescue negotiations are progressing but did not assure that the transaction would definitely complete.



The move aligns with Supreme’s strategy to expand their drinks and nutrition ventures, especially as they plan to wind down their vaping activities in response to upcoming Government regulations targeting disposable vapes next year. A spokesperson from Kroll commented, "As reported recently, the company has experienced significant cash flow constraints as a result of supply chain disruptions and subsequent service issues." Typhoo has been caught in a storm of financial troubles, reporting a staggering loss of £38 million last year while witnessing a sharp decline in sales to £25.

3 million. The tea brand was further shaken in August 2023 when its former Merseyside factory was forcefully taken over by trespassers who caused "extensive damage" and rendered the site "inaccessible" for days, as noted in the company’s narrative at the time. Their actions piled on to a hefty £24 million in exceptional costs for Typhoo that year, significantly disrupting operations.

Despite the sale of the factory finally being completed in June 2024, the heritage brand, established in 1903 and now under the wing of private equity firm Zetland Capital since 2021, is teetering perilously close to closure..