Typhoo Tea administration: iconic British tea brand faces collapse - but may be rescued by vape manufacturer

• Typhoo Tea, a British brand with over 120 years of history, has entered administration
• The company has faced declining sales, rising debts and operational challenges
• Supreme, a vape and battery manufacturer, is in advanced talks to acquire Typhoo
• The proposed acquisition aligns with Supreme's strategy to expand its drinks and nutrition business

An iconic British tea brand with over 120 years of history has entered administration, with a vape manufacturer in advanced talks to rescue the business.

Typhoo Tea filed a notice to appoint administrators on Wednesday (27 November). The collapse comes after years of declining sales, rising debts and challenges such as a break-in at its Wirral factory last year.

Insolvency firm Kroll has been appointed to manage the administration process and is seeking a rescue deal for the business, which reportedly employs fewer than 100 people.

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Supreme, a manufacturer of vapes and batteries, could be the company to do that, as it announced it is in advanced talks to potentially acquire the struggling tea brand.

The London-listed company specialising in vaping products and beverages, told shareholders on Thursday (29 November) that discussions about acquiring Typhoo are progressing but noted there is no certainty a deal will be finalised.

The potential acquisition would align with Supreme’s strategy to expand its drinks and nutrition segment while scaling back its focus on vaping, especially ahead of a planned government crackdown on disposable vapes in 2024.

Founded in 1903, Typhoo has long been one of the UK's most recognised tea brands, but the company's recent decline has pushed it to the brink of collapse.

The company’s most recent filings revealed a £38 million loss for the past year, with sales dropping by 25% to £25.3 million.

In August 2023, the company faced a setback when intruders broke into its former factory in Merseyside, occupying the site for several days. Typhoo reported that the trespassers caused "extensive damage" and rendered the facility "inaccessible."

At the time, the company had been attempting to sell the factory, a deal that was eventually completed in June 2024.

But Typhoo said that the break-in accounted for £24 million of exceptional costs for the year and had a "material" impact on its day-to-day operations.

What do you think about the potential acquisition of Typhoo by Supreme? Will this rescue deal help preserve a British tea icon, or is it the end of an era? Share your thoughts in the comments section.