Vape company in rescue deal after British tea brand falls into administration

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A British tea company has fallen into this. Administration After more than 120 years.

Historic beverage business Typhoon Tea filed a notice for the appointment of administrators on Wednesday, according to an official filing.

Supreme, a maker of vapes and batteries, has said it is negotiating a possible rescue deal to end Typhoon.

Founded in 1903, Typhoo has long been one of the UK’s best-known tea brands, but declines in recent years have put it on the brink of going out of business.

The decline follows years of declining sales, mounting debt and even a break-even period. Viral Factory last year.

Insolvency experts at Kroll have been appointed to oversee the administration process and are hoping to agree a rescue agreement for the business.

It is understood that the business has fewer than 100 employees.

Supreme – The London-listed maker of vaping products and drinks told shareholders on Thursday that rescue talks are at “an advanced stage” but it is not certain that an acquisition deal will be completed.

The move will be part of Supreme’s efforts to expand its beverage and nutrition operations, as it narrows its focus on vaping ahead of a government ban on disposable vapes next year.

A Kroll spokesman said: “As recently reported, the company has experienced significant cash flow disruptions as a result of supply chain disruptions and subsequent service issues.

“The company is exploring the sale of businesses and assets that are winding down.

“The administration process provides protection to Typhoon, allowing the joint administrators to finalize the sale to save the business.”

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Typhoo’s latest company filing showed it made a loss of £38 million last year, while sales fell by a quarter to £25.3 million.

In August 2023, Typhoon suffered a setback when squatters broke into the company’s former factory in Merseyside and occupied the site for several days.

Typhoon said at the time that they caused “extensive damage” and made the site “inaccessible”.

The company had been trying to sell the factory, under a deal that was finally finalized in June 2024.

But Typhoon said the incident accounted for the bulk of the £24 million in extraordinary costs this year, and that it “materially” affected its day-to-day running.