Typhu Tea is set to ax 90 jobs following plans to close its “aging” blending and packing site in Moreton in June.
The company said it was “actively looking” for a new site and to re-employ, but added that it would be at least a year before a suitable location was ready.
Executive chairman Mike Breame said: “Unfortunately the low levels of productivity achievable at the Moreton factory, as well as rising energy and materials costs, make it necessary to close the loss-making site.
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“We are actively exploring options for a new site, but it will take some time to identify, fit and prepare a suitable location.
“Sadly, we estimate that there will be approximately 90 job losses in Moreton.
“I want to thank all colleagues who have contributed so much during recent challenging times and we will do everything we can to assist everyone affected by this announcement.
“With the support of third-party packers, we have a robust plan to meet the demand for Typhoon products, ensuring uninterrupted supply to customers.
“The regrettable but necessary changes allow Typhu to re-realise its ambitions and re-focus on the customer, whilst ensuring the same high level of service and great quality tea that you can expect from the UK’s oldest and most recognized Expect from one of the well received brands.
“2023 marks 120 years of Typhu Tea. These changes allow us to position the business for the next generation of discerning tea drinkers.”
The company said those who would remain in the business would relocate to a hub to oversee the day-to-day management of the restructured organisation.
In July 2021, Typhu T was taken over by Zetland Capital Partners.
BusinessLive reported in July 2022 that the company said being acquired by a private equity firm would help it focus on its recovery with “renewed vigour” after an “extremely challenging” 18-month period.
The firm’s total revenue for the 18 months to September 30, 2021 was £54.5m, while its pre-tax loss was £10.4m.
These figures compare to £53.1m in reported revenue and a pre-tax loss of £15.8m in the 12 months to 31 March 2020.
The company’s brands include Glengetty, Ridgeways, Heath & Heather, London Fruit & Herb, Lyft, Melrose, Freshbrew and Red Mountain.
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