Typhoo Tea has fallen into administration as sales of the 120-year-old brand collapse, losses widen and debts mount.
The Kroll consulting firm was tasked with managing the administration and finding a buyer for the tea business.
Manufacturer and distributor Supreme is the favorite to buy Typhoo, according to the BBC.
Typhoo has been trying to turn itself around for some time but suffered a setback after intruders damaged its former factory in Moreton, Merseyside, last year.
“The company is considering a sale of the business and assets, which is in the process of closing,” Kroll said.
“The administration process provides Typhoo Tea with protection, allowing the co-administrators to complete the sale in order to save the business.”
He added that the company was facing “significant cash flow constraints due to supply chain disruptions and subsequent service issues”.
According to the company's latest results, which cover the year to the end of September 2023, pre-tax losses widened to £38 million from £9.6 million and sales fell to 25,000. £3 million compared to £33.7 million.
The findings also revealed “exceptional costs” worth £24.1 million, some of which relate to the break-in at the Moreton factory, which was closed last year.
During this time, the company's debts became greater than the value of its assets.
