The filing comes less than a month after former Burts Snacks boss Dave McNulty joined Typhoo as its new chief executive, where he was tasked to guid the business to the road to recovery.
Typhoo said the court filing was made to help the business explore rescue options, pay back its debts and give it some breathing space from creditors.
‘Pursue a sale’
David McNulty, chief executive of Typhoo, said: “This action has been taken to enable us to pursue a sale of the business. This does not mean that we are in administration. Given the delicate nature of this we are not in a position to comment any further.”
News of Typhoo’s plans to appoint administrators followed a period of decline for the business, as it struggled to compete against energy drinks and newer trends such as bubble tea.
In its most recent annual report, the tea firm reported annual losses of £38m for the year ended September 2023, as revenue fell 25% from the previous year to £25.3m.
Typhoo’s losses
A significant amount of Typhoo’s loses were attributed to exceptional costs of £24.1m, a portion of which was associated with its transformation plan to address legacy and structural issues faced by the company which was still underway.
While the value of tea sales in the UK has grown in recent years, volumes have dropped in the face of growing competition from coffee, soft drinks and foodservice occasions.
Meanwhile, Grimsby-based D&A Seafood Solutions has been rescued from administration, saving the jobs of more than 30 members of staff at the business.
Business advisory firm Quantuma has secured the future of D&A Seafood Solutions Ltd in a pre-pack sale to Ramus, a supplier of premium quality fresh fish and seafood.
