Typhoo Tea 'set to appoint administrators' after Merseyside factory damage

Typhoo Tea is on the verge of appointing administrators after millions of pounds worth of damage was done to its former Moreton factory. The tea giant claimed earlier this year that trespassers at its closed Wirral factory caused "extensive damage" and slowed down the sale of the site following the announced closure in March last year.

The company confirmed in August this year it incurred one-off costs of more than £20m after its Moreton factory was broken into and occupied for several days during August 2023. That meant Typhoo Tea reported a pre-tax loss of £37.9m for the year to September 30, 2023, compared to a loss of £9.6m in the prior 12 months.

Typhoo Tea's chief executive Dave McNulty told the BBC the company had filed a notice at court "which affords the company some breathing space to explore solutions". It is reported the company will appoint accountancy firm EY to handle the potential administration.

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The company was founded in 1903 and is based in Bristol following its move from the Wirral. It is one of the country's most recognisable tea brands. A statement from the board earlier this year said: “Whilst trading was broadly in line with expectations given the effects of the transformation of the business during the period, 2023’s results are dominated by exceptional costs of £24m.

“A portion was the one-off costs of executing a major transformation plan, necessary to address the significant legacy and structural issues faced by the company but fundamental to providing a pathway to sustained profitability. Significant progress was made in the plan’s delivery during the year.

“However, a significant portion also came from one-off events, outside of the company’s control, which could not have been foreseen but negatively impeded progress and had additional material adverse effects on the company’s results.”

Typhoo Tea was acquired by Zetland Capital Partners in July 2021.