Typhoo Tea is on the brink of collapse and seeking a rescue deal following years of mounting debt.

The UK’s oldest tea brand has filed a notice to appoint administrators from EY, according to new court filings seen by the Telegraph, amid searches for a rescue option.

New chief executive Dave McNulty said: “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.”

The news follows sales at Typhoo last year plummeting 26% to £25m, compared to £34 in 2022, while losses shot up to £38m from £9.7m the year before.

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The results can be partially blamed on the tea manufacturer taking a financial hit follow a break-in at its Merseyside factory, which suffered “extensive damage” to equipment and stock.

The tea brand said it was forced to absorb £24m of exceptional costs in the 2023 financial year, with a notable amount related to the factory break-in.

Last month, Typhoo appointed former head of Burts crisps Dave McNulty as its new chief executive as it attempted to overhaul it supply chain in a bid to end sexual violence against women working on tea plantation in Africa.

However the move saw the brand drop contracts with 300 tea plantations, keeping just three, and cautioned this shift could result in higher prices for consumers.