Typhoo Tea: Jobs at risk as historic brand nears collapse

More than 100 jobs are at risk after it emerged that Typhoo Tea is on the verge of collapsing into administration.

The Bristol-headquartered business, which can trace its roots back over a century, is lining up EY to oversee the process after filing a a notice of intention to appoint administrators.

In an interview with the BBC, Typhoo’s chief executive Dave McNulty said the move “affords the company some breathing space to explore solutions”.

The news comes after Typhoo Tea made a loss of almost £40m in the year to 30 September, 2023, after trespassers caused “extensive damage” to its Merseyside factory.

The company incurred one-off costs of more than £20m after its Moreton factory was broken into and occupied for several days during August 2023.

As a result, Typhoo Tea reported a pre-tax loss of £37.9m for the year, compared to a loss of £9.6m in the prior 12 months.

Its revenue also fell from £33.6m to £25.3m over the same period.

Typhoo Tea has not made a profit since 2017

The last time Typhoo Tea made a pre-tax profit was the £220,000 it posted in the year to March 31, 2017. Since then, the company has made over £100m in pre-tax losses.

Its accounts for its most recent financial year are not due to be filed with Companies House until the end of June 2025.

In March 2023 it was revealed that the firm was to shut down its site in Moreton in June that year with the loss of up to 90 jobs.

In a statement included in its latest set of accounts, Typhoo Tea said that, having “radically rationalised operations” in 2023, the directors are “excited” for the 2024 financial year.

It added: “Legacy issues have been largely dealt with and the results of this operational transformation should become evident during this period.

“The company is now set up for growth, will add value to our customers and consumers and expects to further increase and improve its product range.

“The company will also garner incremental distribution in new channels and improve penetration and operations to achieve higher efficiency and profitability.”

During the year to 30 September 2023, the avenue number of people employed by the company was cut from 198 to 116.

Typhoo Tea was taken over by Zetland Capital Partners in July 2021.