Typhoo Tea will close its “ageing” blending and packing factory, which means 90 job cuts.
The company said it is “actively exploring” options for a new site and re-employment, but added it will take at least a year to find a suitable location after the site in Moreton closes.
Executive chairman Mike Brehme said: “Unfortunately the spiralling cost of energy and materials, alongside low levels of productivity achievable at the Moreton factory, make it necessary to close the loss-making site.
“We are actively exploring options for a new site, but it will be some time before a suitable location is identified, fitted out and ready.
“Sadly, we anticipate this resulting in approximately 90 job losses at Moreton.
“I would like to thank all colleagues who have contributed so much in recent, challenging times and we will do all that we can to assist everyone affected by this announcement.
“With the support of third-party packers, we have a robust plan in place to meet the demand for Typhoo products, ensuring supplies to customers continue uninterrupted.
“The regrettable but necessary changes allow Typhoo to realign its ambitions and refocus on the customer whilst ensuring the same high level of service and great quality tea you expect from one of the UK’s oldest and most recognised brands.
“2023 marks the milestone of 120 years of Typhoo Tea. These changes allow us to set the business up for the next generation of discerning tea drinkers.”
The remaining staff will be relocated to a hub to oversee the day-to-day management of the restructured organisation.
Zetland Capital Partners purchased Typhoo Tea in July 2021.
According to BusinessLive, the company said in July 2022 that being taken over by a private equity firm will allow it to focus on its recovery with “new vigour” following an “extremely challenging” 18-month period.
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For the fiscal year ending September 30, 2021, the company’s revenue was £54.5m, while its pre-tax losses were £10.4m.
These figures contrast with the £53.1 million in revenue and £15.8 million in pre-tax losses reported for the fiscal year ending March 31, 2020.
Glengettie, Ridgeways, Heath & Heather, London Fruit & Herb, Lift, Melroses, Freshbrew, and Red Mountain are among the other brands owned by the company.
Source: Business Live