**Typhoo Tea Struggles and Heads Towards Administration**
In a recent turn of events, Bristol-based Typhoo Tea has taken a significant hit as the company collapses into administration. With over 100 jobs now at stake, Typhoo Tea has filed a court notice to appoint administrators following a series of challenges that have plagued the 120-year-old brand. The brand’s losses have widened to £38 million, while sales have plummeted to £25.3 million.
In the midst of declining sales and mounting debts, Typhoo Tea faced further setbacks, including a break-in at its Wirral factory last year. The company’s former factory in Merseyside was also trespassed by individuals in August 2023, causing extensive damage and rendering the site inaccessible. These incidents, along with exceptional costs amounting to £24 million, have significantly impacted the company’s operations.
Established in 1903, Typhoo Tea has been a prominent tea brand in Britain. However, the recent decline has put the brand in jeopardy of disappearing. Since 2021, private equity firm Zetland Capital has been the majority shareholder of Typhoo Tea. In efforts to rejuvenate the company, Dave McNulty, the former head of Burts crisps, was appointed as the new chief executive in October. A supply chain overhaul was also initiated to address issues such as sexual violence against women on tea plantations in East Africa.
The restructuring aimed to reduce the number of plantations in the supply chain from 300 to just three, marking a significant shift for the company. Despite these efforts, Typhoo Tea has now turned to administrators at EY for assistance. This move is seen as a means to provide the company with some breathing space to explore potential solutions as it navigates through this challenging period.
The future of Typhoo Tea remains uncertain, with the brand’s existence hanging in the balance. The once-thriving tea company now faces the harsh realities of financial turmoil and operational disruptions. As Typhoo Tea grapples with the looming threat of administration, the fate of its employees and the legacy of the 120-year-old brand are at stake.
The story of Typhoo Tea serves as a reminder of the ever-changing landscape of the business world and the challenges that companies, both old and new, must confront to stay afloat. With a rich history behind it, Typhoo Tea now stands at a crossroads, awaiting a resolution that will determine its future in the competitive market.