The iconic drinks business officially appointed administrators on Wednesday after a two-week search for a buyer.
The vape and battery maker Supreme is in talks about possibly buying the business, which collapsed following several years of declining sales and mounting debts.
A statement from the board of Supreme said: “Whilst discussions with the administrators are now at an advanced stage, there can be no certainty that the potential acquisition will be completed. No final terms of the potential acquisition have been agreed, but the company can however confirm that any potential offer would be funded by Supreme’s existing bank facilities. Further announcements will be made as and when appropriate.”
Supreme is aiming to grow its drinks and nutrition operations head of a Government clampdown on disposable vapes due next year.
Insolvency specialists at Kroll have been appointed to oversee Typhoo’s administration process.
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A spokesperson for Kroll said: “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’s latest company filings showed that it made a £38m loss last year, while sales fell by a quarter to £25.3m.
There was a break-in at a Typhoo factory in Merseyside in August 2023, with trespassers occupying the site for several days. Typhoo said the incident made up most of £24m of exceptional costs for last year, and that it had “materially” affected its day-to-day running.
Typhoo was founded in 1903. Private equity firm Zetland Capital has been its majority shareholder since 2021.
