Vape maker Supreme buys collapsed Typhoo Tea in £10.2m rescue deal

Typhoo Tea, a 121-year-old firm, filed for administration last Wednesday due to declining sales and mounting debts. Supreme confirmed on Monday that it had finalised a £10.2 million rescue deal to buy the brand, which includes £7.5 million for its stock and trade debts.

Typhoo reported revenues of £20 million for the year ending September 30 but suffered a pre-tax loss of £4.6 million. Supreme plans to run the business using a “capital-light, outsourced manufacturing model” to boost profitability.

The company’s collapse came after years of financial struggles, including a break-in at its Wirral factory last year. Kroll, the insolvency specialists, managed the administration and sale process. The firm reportedly has fewer than 100 employees.

Supreme’s acquisition is part of its strategy to diversify beyond vaping, following its purchase of the soft drinks company Clearly Drinks earlier this year. This comes ahead of a potential UK Government crackdown on disposable vapes.

Supreme’s CEO, 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.”