Typhoo Tea has entered receivership, but a buyer could already be on the verge of taking over the struggling business.
Administrators were appointed for the more than 100-year-old tea brand on Wednesday, but a potential buyer has already emerged.
Consumer goods wholesaler Supreme said its takeover discussions were “at an advanced stage”, but warned that “there can be no certainty” that the purchase would go ahead.
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THE the collapse was expected while Typhoo filed court papers two weeks ago saying it was preparing to enter administration.
Typhoo experienced supply chain disruptions and cash flow difficulties, administrators Kroll said.
Sales have fallen and debts have increased in recent years. Last year the company made a loss of £38 million, while sales fell by a quarter to £25.3 million.
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Britons are increasingly preferring coffee to tea, according to industry analyst Mintel. It predicts an 8% drop in tea consumption between 2023 and 2028.
Typhoo faced further difficulties when its former Merseyside factory was broken into and occupied in August 2023, rendering the site “inaccessible” and causing “excessive damage”. The factory was finally sold in 2024.
The company is considering a sale of the business and assets, Kroll added, a process that is “in the process of wrapping up.”
The current administration process provides Typhoo with protection, administrators said, allowing time to finalize a sale.
Possible Buyer Supreme is a wholesale distributor of products such as batteries, lighting, vaping and beverages.