Typhoo Tea teeters on the brink of administration

Friday at 10:57 AM

Typhoo Tea is set to appoint administrators as the 120-year old brand’s sales slump, losses widen and debts rise.

The company has filed a notice at court “which affords the company some breathing space to explore solutions”, Typhoo’s chief executive Dave McNulty told the BBC.

The firm has been trying to turn itself around for some time.

However, it suffered a setback after trespassers damaged its former factory in Moreton, Merseyside in August followed by a fire at the same plant in October.

“Given the delicate nature of this we are not in a position to comment any further,” said McNulty.

Typhoo has reportedly appointed accountancy firm EY to handle the administration.

The company’s losses widened to £38m from £9.6m in the year to the end of September 2023, which are the most recent results available. Sales fell to to £25.3m from £33.7m.

The results also revealed £24.1m worth of “exceptional costs”, some of which relates to the break-in at the Moreton plant, which was shut down last year.

Typhoo said: “During August, a group of organised trespassers broke into the Moreton site and occupied it for several days.”

It added that the trespassers caused “extensive damage” and made the site “inaccessible”.

It said a lot of tea was rendered unusable and it was unable to fulfil some orders to customers.

Not reflected in the results were the impact of a fire in October at the same Moreton plant.

Local fire services told local publication Wirral Globe that the fire broke out on 1 October, with firefighters working throughout the night to put the blaze out.

Typhoo Tea was founded in 1903 and is widely seen as one of the UK’s main tea brands, alongside the likes of PG Tips, Tetley’s and Yorkshire Tea.

Source link

#Typhoo #Tea #teeters #brink #administration

Pelican News

Source Link