One of UK's oldest tea companies 'on brink' after shoppers 'ditch' it

One of Britain’s oldest tea companies is on the brink of administration as shoppers ditch it. Typhoo Tea - one of the oldest tea companies in the UK - is on the brink of administration as it faces mounting losses, it has emerged this week.

Typhoo Tea has filed notice that it intends to appoint administrators. Typhoo is using the process to explore rescue options, with administrators from EY lined up. It is understood that Typhoo could enter formal administration at the end of next week.

Typhoo has filed a notice to appoint administrators, according to court filings on Thursday. Dave McNulty, chief executive of Typhoo, said: “This action has been taken to enable us to pursue a sale of the business. A further statement will be issued in due course with further information.”

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Typhoo, which was founded in 1903 by Birmingham grocer John Sumner, was once one of the UK’s best-selling tea brands. Sales have struggled in recent years as many Britons have switched to coffee, energy drinks and novelty drinks such as bubble tea.

Revenues at Typhoo fell from £34m in 2022 to £25m last year, while losses ballooned to £38m from £9.7m a year earlier, according to publicly available accounts. Typhoo said it was forced to swallow £24m of exceptional costs in the 2023 financial year.

Typhoo hired Dave McNulty, the former head of Burts crisps, as its new chief executive last month. Typhoo did not respond to requests for commment. The company could be bought during its notice period and avoid going into administration completely.

Or, it could still collapse into administration and then be sold. Dave McNulty, chief executive of Typhoo, told The Telegraph newspaper: "This action has been taken to enable us to pursue a sale of the business.

"A further statement will be issued in due course with further information."