Typhoo Tea on brink of collapse after 120 years in business

Typhoo Tea is on the brink of administration after persevering for over 120 years. The brand, founded in 1903, has upwards of 100 jobs on the line.

After grappling with diminishing sales, burgeoning debts, and even a break-in at its Wirral factory in the previous year, Typhoo has been compelled to lodge a court notice for the appointment of administrators. Revelations from the latest company records highlight a sobering £38 million loss in the last counted year, with sales plummeting by a quarter to just £25.3 million, and the team comprising 116 personnel as of late 2023.

Typhoo faced added hardships this past August when their factory in Merseyside was broken into. The trespassers stayed put for days on end, causing "extensive damage" and leaving the site "inaccessible", as per the company's statement back then.

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This unfortunate event preceded the selling of the factory in June 2024—a disposal already overshadowed by £24 million in exceptional costs and significant upheavals in daily operations.

For years Typhoo has endured as a household name in the UK, yet the recent hardships have pushed it to the edge of collapse. The firm's reins were handed to private equity outfit Zetland Capital in 2021.

In a bid to reverse fortunes, Typhoo welcomed new CEO Dave McNulty, formerly of Burts Crisps, last October and unfolded an extensive overhaul of its supply chain processes.

The reorganisation aimed to tackle sexual violence against female tea plantation workers in east Africa, leading to a drastic reduction in the number of plantations in its regional supply chain from 300 to just three.

McNulty revealed to the BBC on Friday that Typhoo had appointed administrators from EY, stating that this move "affords the company some breathing space to explore solutions".

Both Typhoo and EY declined to comment further.