Coughlans Bakery, an 89-year-old bakery chain operating across Kent, Surrey, West Sussex and south London, has ceased trading after entering voluntary liquidation, according to the BBC. Romesh Ranganathan, the comedian who became co-owner in 2024 and described the move as 'the partnership of the century', said he is 'gutted' by the closure.
Closure and Financial Impact
The chain announced it had ceased trading on Tuesday after management opted for voluntary liquidation, a process intended to ensure suppliers and employees are paid, the BBC reported. Managing director Sean Coughlan cited multiple financial pressures that made the business unsustainable.
Causes of Shutdown
Coughlan attributed the closure primarily to the government's decision to increase national insurance contributions for employers in April 2025. He also pointed to high business rates, which he said on social media had 'absolutely smashed local business'. Combined with rising fuel prices following the Middle East conflict, these factors added an extra £20,000 per week to the company's costs, Coughlan explained.
Recent heatwaves further worsened the situation. With temperatures reaching 35°C in southeast England, the BBC reported that 'no one really seemed to come out' during the hot weather, causing the bakery to make only about 50% of its normal weekly revenue while outgoings remained unchanged. Coughlan described this as the 'nail in the coffin' for the firm.
Role of Romesh Ranganathan
Ranganathan, known for his deadpan comedy and vegan lifestyle, initially became a supporter of Coughlans due to its range of plant-based products before becoming co-owner last year. Coughlan praised Ranganathan's involvement, telling the BBC: 'I feel like we've absolutely let him down. Everything he's done, it's been from the heart.' Ranganathan reposted Coughlan's video announcement to his 1.4 million online followers with the caption: 'Gutted isn't the word.'
Broader Context
The closure highlights the ongoing pressure on small and independent retailers in the UK from rising employment costs and business rates. Coughlans, an 89-year-old family-run business, joins a growing list of local chains unable to absorb these increases. The voluntary liquidation is intended to protect creditors, but the chain's operations have ceased entirely.
| Factor | Impact on Coughlans |
|---|---|
| Employer NI increase | Added to weekly costs |
| High business rates | 'Absolutely smashed' business |
| Fuel price spike (Middle East) | Extra £20,000/week combined |
| Heatwaves (35°C) | 50% revenue drop |
Next Steps
Coughlans Bakery has entered voluntary liquidation, with the process aimed at paying outstanding debts to suppliers and employees. No further trading will occur at its shops. The future of the brand or any potential sale has not been disclosed.
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