One of Britain's oldest tea makers could be about to change hands amid a period of difficult trading.

City sources said advisers from FTI Consulting were working on a sale of Typhoo Tea, which was founded by John Sumner in the early 1900s in Birmingham. Typhoo Tea is now owned by the Indian conglomerate Apeejay Surrendra Group.

Accounts filed at Companies House show that Typhoo Tea has had a tough time recently. In 2019, the company generated a pre-tax loss of £29.9million from £60.8 million of sales. The latest set of accounts are overdue.

The 2019 accounts show that Typhoo Tea's bankers are Axis Bank, Barclays and ICICI. In the accounts, the company admits that 'there was a breach of covenants' on its loans.

City sources said FTI Consulting was acting on behalf of Typhoo Tea's lenders amid a possible restructuring or sale.

A spokesman for FTI Consulting declined to comment. A spokesman for Apeejay Surrendra Group did not return calls.