Vape company likely buyer of Typhoo Tea as it enters administration
A vape manufacturer has emerged as the likely buyer of the UK’s oldest tea brand Typhoo Tea, after it entered into administration this week.
London-listed vape firm Supreme told its shareholders yesterday (28 November) that while it is uncertain that an acquisition will complete, rescue talks for Typhoo Tea are “at an advanced stage”, Mail Online reported.
The deal would form part of the firm’s ambitions to grow its drinks and nutrition divisions, as it looks to move its focus away from just vaping as the government looks to ban disposable vapes by the end of 2025.
Sales at Typhoo plummeted 26% to £25m last year, compared to £34 in 2022, while losses shot up to £38m from £9.7m the year before as debts mounted to almost £70m.
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According to official filings, the business filed a notice to appoint administrators on Wednesday, with insolvency specialists at Kroll overseeing the process and hoping to sort a rescue deal.
A spokesperson for Kroll told the title: “As reported recently, the company has experienced significant cash flow constraints as a result of supply chain disruptions and subsequent service issues.
“The company has been exploring a sale of the business and assets which is in the process of concluding. The administration process provides Typhoo Tea with protection, allowing the joint administrators to finalise the sale in order to rescue the business.”
Typhoo Tea’s poor performance last year can be partially blamed on the tea manufacturer taking a financial hit following a break-in at its Merseyside factory, which suffered “extensive damage” to equipment and stock.
The brand was forced to absorb £24m of exceptional costs in the 2023 financial year, with a notable amount related to the factory break-in.
2 Comments. Leave new
I wknder the tea as resilient as the sharehokders? The tot, didnt ur hrother know bankruptcy is a type of restructuring too? No will to rrbuilt? Anyway ina world of etc, if jot resikient etc enough, swallowed over n sch are a norm anyway..if not where got big malls? All would stikk be nice wuaint shops no? Eew..why got bitter taste? Oh my…my bitterness went to my tongue?
I wknder the tea as resilient as the sharehokders? The tot, didnt ur hrother know bankruptcy is a type of restructuring too? No will to rrbuilt? Anyway ina world of etc, if jot resikient etc enough, swallowed over n sch are a norm anyway..if not where got big malls? All would stikk be nice wuaint shops no? Eew..why got bitter taste? Oh my…my bitterness went to my tongue? No…is always like dat…d wtever simply like to follow me wherever i pwtronize frewuently