Typhoo Tea has been rescued by vape maker Supreme which will buy the company for £10m.
The 120-year-old teamaker fell in to administration in November as its sales slumped and debts rose.
The new owner said the deal would keep Typhoo “in British hands” but that manufacturing would be moved abroad.
Manchester-based Supreme makes the e-cigarette brand 88Vape and distributes nicotine and home products to supermarkets.
“Typhoo is such an iconic brand,” said Supreme chief executive Sandy Chadha, who said he had a “personal affinity” with Typhoo.
He said the deal was part of Supreme’s strategy to branch out into other areas. It currently works with soft drinks, gym supplement and multivitamin gummy brands.
Typhoo fell into administration after its pre-tax losses rose from £9.6m to £38m. Its sales fell from £33.7m to £25.3m, according to its latest results which covered the year to the end of September 2023.
Its debts became more than the value of its assets, and costs related to a break-in at its Wirral plant added to its woes.
But Supreme said buying the company was a “significant step” and that Typhoo would “thrive” because of the brand loyalty customers had to the tea brand.
