A family-owned bakery that has been in operation for 89 years has closed its doors due to the mounting cost crisis in Britain. Coughlans Bakery, which had a chain of shops across Kent, Surrey, West Sussex, and south London, ceased trading after slipping into voluntary liquidation.
The bakery's closure marks the end of an unlikely celebrity business partnership with comedian Romesh Ranganathan, who became a co-owner in 2024 and had hailed the partnership as "the partnership of the century." Ranganathan expressed his disappointment, stating he was "gutted" by the collapse.
The managing director of the bakery, Sean Coughlan, attributed the closure to the government's decision to lift employers' National Insurance contributions, which raised the headline rate to 15 percent and lowered the threshold at which employers start paying. He also cited a business-rates bill that had "absolutely smashed local business."
The bakery faced additional pressures, including a spike in fuel prices following a recent conflict, which Coughlan estimated had cost the company an extra £20,000 a week. A summer heatwave that pushed temperatures in the South East to 35C proved to be the "nail in the coffin," with weekly takings roughly halving while expenses remained the same.
Coughlan acknowledged the human cost of the closure, expressing regret for letting down his employees and celebrity backer. He praised Ranganathan, saying he had been "amazing" and had supported the business from the heart.
Customers also expressed their sadness at the bakery's closure, with one employee describing it as a "massive shame." The bakery's staff were praised for their dedication to their jobs and ability to make customers happy.
Coughlan's decision to pursue voluntary liquidation was made to ensure that suppliers and employees could still be paid. He described the situation as "heartbreaking."
The closure of Coughlans Bakery is not an isolated incident, with industry data showing that three pubs, bars, and restaurants are now shutting every day due to tax and cost rises. The impact of these closures is expected to continue, with high-street closures set to surge as the business-rates burden grows.
