The firm had been searching for investment but, despite being in talks with a potential saviour for more than two months up to the administration, was unable to tie up a deal.

The company has claimed that, despite the cashflow issues, sales are strong and it is on course to record its first operating profit.

It was founded by Mr Needham and Ms Hitchen in April, 2006.

They had worked together at tea maker Gold Crown as operations director and financial controller respectively.

Kirkby firm Gold Crown stopped trading after a fire at the factory in the summer of 2005, which led to the pair deciding to start their own business.

It was launched with £250,000 investment, including £100,000 from Merseyside Special Investment Fund.

The two directors remortgaged their homes, with managing director Mr Needham saying he had “never been this exposed in my life”.

When launching the product, he said: “After 30 years in the industry, this is a gamble, but we believe Lancastrians will back the product.”

However, market penetration has proved difficult without large advertising budgets to compete.

The firm’s development has been stunted by the recession and record tea prices caused by droughts in tea-growing countries and rising global demand for tea.

It needs to sell about 40,000 packs a month to break even.

A successful sales drive staved off the short-term threat but, with the economic climate remaining tough, the company has been unable to secure its long-term future.