Typhoo Tea has fallen into management because the 120-year-old emblem’s gross sales hunch, losses widen and money owed stand.
Advisory company Kroll has been appointed to care for the management and discover a purchaser for the tea trade.
Producer and distributor Superb is entrance runner to shop for Typhoo, the BBC understands.
Typhoo has been looking to flip itself round for once in a while, nevertheless it suffered a setback next trespassers broken its former manufacturing facility in Moreton, Merseyside closing yr.
“The company has been exploring a sale of the business and assets which is in the process of concluding,” Kroll mentioned.
“The administration process provides Typhoo Tea with protection, allowing the Joint Administrators to finalise the sale in order to rescue the business.”
It added the company were coping with “significant cash flow constraints as a result of supply chain disruptions and subsequent service issues”.
In line with the company’s original effects, which shield the yr to the tip of September 2023, pre-tax losses widened to £38m from £9.6m and gross sales fell to £25.3m from £33.7m.
The effects additionally not hidden £24.1m utility of “exceptional costs”, a few of which pertains to the break-in on the Moreton plant, which used to be close indisposed closing yr.
In the meantime, the corporate’s money owed have ballooned to larger than the worth of its property.
