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- 📈 Typhoo’s 120-Year Streak Meets Bitter End
📈 Typhoo’s 120-Year Streak Meets Bitter End
Wefox’s £3.6bn Glow Dims to Grit
This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes
In today’s stories:
Typhoo’s 120-Year Streak Meets Bitter End
Wefox’s £3.6bn Glow Dims to Grit
M&S, Kingfisher Hunt for Homebase Bargains
The summary: Typhoo Tea’s tumble into administration shows that even 120 years of brewing British tradition can’t out-steep debts, but with a vape-maker eyeing a cuppa-shaped rescue, there’s still a chance for a fresh start.
The details:
A Bitter Brew: Typhoo Tea, the 120-year-old stalwart of British cuppas, has gone into administration, with losses brewing at £38m and debts steep enough to make your kettle boil over.
Supreme Interest: Vape and battery maker Supreme fancies a sip, aiming to diversify into tea. Talks are "advanced," but it’s no Earl Grey certainty yet.
Moreton Mayhem: Last year’s factory trespass left Typhoo steeped in chaos, with unusable tea, lost orders, and £24.1m in "exceptional costs."
Trouble in the Teacup: Despite a recent brand revamp, Typhoo's "Fear Free Tea" campaign hasn't saved it from swirling supply chain woes, slumping sales, and a desperate search for a buyer.
Why it matters: The downfall of Typhoo Tea marks the sobering reality that even heritage brands aren't safe from financial storm clouds, especially when debt piles up faster than you can say "milk, no sugar." With a vape-and-batteries firm eyeing the tea aisle, it’s a curious brew of modern business diversifications – caffeine meets nicotine, anyone? Meanwhile, the chaos at Moreton and a bold yet ironic "Fear Free Tea" campaign serve as a reminder that marketing alone can’t sweeten the bitter taste of bad economics.
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vThe summary: Wefox’s journey from a $4.5bn fintech star to a scrappy underdog raising €150m shows there’s still plenty of fight left in this insurance innovator despite a few bumps in the road.
The details:
From Unicorn to Workhorse: Wefox, once valued at $4.5bn, now finds itself scraping to maintain a sub-$1bn valuation as it battles losses in key markets like Italy.
A €150m Lifeline: Investors Chrysalis and Target Global are rallying for a €60m-€80m share sale and refinancing a €70m credit facility to keep the ship afloat.
Subsidiaries at Stake: To dodge selling prized asset TAF, Wefox is asking shareholders to commit by Friday—a cash call aimed at averting yet another strategic retreat.
Insurance ‘Revolution’ Wobbles: Founded with bold tech ambitions, Wefox's 2M customers and grand claims are now overshadowed by repeated warnings of running out of cash.
Why it matters: Wefox’s tumble from a $4.5bn darling to a cash-strapped struggler highlights just how fast the fintech fairy tale can unravel. With shareholders scrambling to plug a €150m hole, it’s a stark reminder that even the shiniest unicorns can trip over their own hooves. For anyone in tech or finance, it’s a cautionary tale of lofty valuations meeting the cold, hard reality of profitability—or lack thereof.
The summary: M&S, Kingfisher, and The Range are swooping in on Homebase’s leftover stores, grabbing opportunities, saving jobs, and making the best of a tough retail climate!
The details:
Marks & Spencer and Kingfisher are eyeing 20-25 Homebase stores, with plans to rescue jobs and add new shops to their portfolios.
The DIY chain's collapse has put 2,000 jobs on the chopping block, but efforts are underway to save as many as possible.
Home Bargains is also in the running for a handful of Homebase locations, alongside The Range, which scooped up 70 stores and 1,600 staff in a pre-pack deal.
With cost pressures mounting after the Budget, retailers are navigating a tricky landscape—buying stores might just be the smart play.
Why it matters: With M&S and Kingfisher keen to snap up Homebase’s scraps, it’s a clever move to expand their empire while saving jobs in a market that’s under increasing pressure. Meanwhile, The Range is flexing its muscles with a pre-pack deal and a hefty employee takeover—proving that in retail, it’s sink or swim. As for the rest, it’s a case of trying to make the most of a bad situation, with retailers hedging bets to stay afloat amidst rising costs.
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