Typhoo Tea In Administration Threat
One of the Britain's oldest tea companies has filed an intention to appoint administrators in the court.This follows a very difficult year with sales falling and an expensive break in at one of its factories. Sales fell from £38m to £25m in 2023 and it had to take an exception cost of £24m relating to the damage of stock and equipment following the break in.The company was founded in 1903 by grocer John Sumner and was at one time the best selling tea brand in the UK.It should be noted that the intention to appoint administrators is a way of protecting the company from aggressive creditor actions, such as winding up petitions. It gives the company protection for 10 days whilst it tries to rescue the business. This might be additional finance or a sale. EY is named as the possible administrator and will be looking at the options.Private equity firm Zetland Capital has been the company’s majority shareholder since 2021. Typhoo’s debts stood at £73m at the end of September 2023, compared to £53m a year earlier.According to the company's accounts it has made losses in excess of £40m every year since 2019.
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