Typhoo plans to enter administration

Tea supplier Typhoo is intending to appoint administrators to restructure the business after incurring increasing losses.

 

A spokesperson for the historic brand, which was founded in 1903, told The Caterer: “Typhoo Tea Limited (TTL) announced its intention to appoint administrators on 14 November 2024.

 

“TTL is not in administration, and 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.”

 

Accountancy firm EY is expected to manage the process.

 

Typhoo’s most recent financial results for the year ended 30 September 2023 showed that losses widened from £9.6m in 2022 to £38m last year. Sales also fell from £33.7m to £25.3m.

 

The Bristol-headquartered company’s annual report stated that exceptional costs of £24m were generated last year due to executing a major transformation plan that included discontinuing unprofitable lines and the closure of its factory in Moreton, Merseyside.

 

However, in August 2023 a group of trespassers broke into the Moreton site and caused “extensive damage”, resulting in low stock levels and unfulfilled orders in the immediate aftermath, and delaying the completion of the sale to June 2024.

 

Stock availability was also negatively impacted by general tea paper shortages in the UK during the year, which meant Typhoo was not able to fulfil all customer orders.

 

Since 2021, Typhoo has been majority-owned by private equity firm Zetland Capital, which purchased the company from Apeejay Surrendra Group. The Indian conglomerate itself bought the business from Premier Foods in 2005.

 

Typhoo supplies the hospitality industry with bulk packs of teabags through wholesalers including Brakes, Mellcrest, Pilgrim Foodservice and Turner Price.