Typhoo Tea falls into administration

Typhoo Tea has fallen into medication arsenic the 120-year-old brand's income slump, losses widen and debts rise.

Advisory steadfast Kroll has been appointed to grip the medication and find a purchaser for the beverage business.

Manufacturer and distributor Supreme is beforehand runner to bargain Typhoo, the BBC understands.

Typhoo has been trying to crook itself astir for immoderate time, but it suffered a setback aft trespassers damaged its erstwhile mill successful Moreton, Merseyside past year.

"The institution has been exploring a merchantability of the concern and assets which is successful the process of concluding," Kroll said.

"The medication process provides Typhoo Tea with protection, allowing the Joint Administrators to finalise the merchantability successful bid to rescue the business."

It added the steadfast had been dealing with "significant currency travel constraints arsenic a effect of proviso concatenation disruptions and consequent work issues".

According to the firm's latest results, which screen the twelvemonth to the extremity of September 2023, pre-tax losses widened to £38m from £9.6m and income fell to £25.3m from £33.7m.

The results besides revealed £24.1m worthy of "exceptional costs", immoderate of which relates to the break-in astatine the Moreton plant, which was unopen down past year.

Meanwhile, the company's debts person ballooned to greater than the worth of its assets.