Typhoo Tea saved from administration in rescue deal by vape company Supreme

Collapsed tea firm Typhoo has been bought out of administration by Supreme, a vape and batteries manufacturer.

Typhoo Tea filed to appoint administrators on Wednesday, risking the future of the 121-year-old business - but after talks last week, Supreme confirmed it has completed a rescue deal to buy the brand.

The tea firm's collapse comes after several years of declining sales, mounting debts and even a break-in at Typhoo’s Wirral factory last year.

Supreme said it will pay a total of £10.2 million to buy Typhoo, in a deal which values the brand’s stock and trade debts at £7.5 million.

Typhoo generated revenues of around £20 million for the year to September 30, with a pre-tax loss of around £4.6 million.

The new owner said it plans to run Typhoo on a “capital-light, outsourced manufacturing model” in a bid to improve profits.

Insolvency specialists at Kroll were ultimately appointed to oversee the administration process and strike a sale deal. It is understood the business has fewer than 100 employees.

Subscribe free to our weekly newsletter for exclusive and original coverage from ITV News. Direct to your inbox every Friday morning.

The move is part of a strategy by Supreme to expand its operations away from vaping, before a planned Government crackdown on disposable vapes.

Chief executive Sandy Chadha said: “The acquisition of Typhoo Tea marks a significant step in our broader diversification strategy and brings one of the most iconic UK consumer brands into the Supreme family.

“I believe Typhoo Tea will thrive under our ownership, further benefiting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for this business.”

Have you heard The Trapped? Listen as Daniel Hewitt exposes the UK's dirty secret