Coughlans Bakery, a family-owned chain with 31 stores across the UK, has announced it is entering voluntary liquidation after nearly 90 years in business. Co-owner Sean Coughlan attributed the closure to a combination of rising taxes, increased fuel prices, and a recent heatwave that impacted sales.
In a video shared on social media, Mr. Coughlan stated the decision was made to ensure all staff and suppliers were paid. He described the shutdown as "devastating," citing increased operational costs as the primary driver. According to Mr. Coughlan, the business faced an additional weekly bill of £20,000 due to rising rates, and its fuel costs doubled to £6,000 amid a crisis in the Middle East.
The bakery was also impacted by a recent heatwave, which led to a 50% drop in business as customers opted for indoor dining. "The decision to shut-up-shop had affected us more than we could have ever imagined," Mr. Coughlan said.
Comedian Romesh Ranganathan became a co-owner of Coughlans Bakery in 2024. Mr. Coughlan expressed gratitude for Ranganathan's involvement, calling him an "honorary Coughlan" and a "newest family member." Ranganathan responded to the news on social media, stating, "You've not let me down mate! Much love. Gutted isn't the word."
The closure comes as the UK's hospitality sector faces significant financial pressures. A survey by UK Hospitality, the British Beer and Pub Association, the British Institute of Innkeeping, and Hospitality Ulster indicated that one in six hospitality businesses are at risk of closing in the next year, with almost a quarter currently operating at a loss. Between January and March 2025, approximately 305 establishments closed, averaging three closures per day.
Kate Nicholls, chair of Hospitality UK, noted that the sector has faced over £5 billion in cost increases across the last two budgets, exacerbating an already high tax burden. She urged the government to reduce the tax burden, suggesting a cut in VAT to 10% to align with European rates.
A spokesperson for the Treasury commented that the government has an economic plan in place, including reforms to business rates and a £4.3 billion support package to limit bill increases. The spokesperson also highlighted that over 40% of employers are expected to pay no employer National Insurance contributions in 2030-31, with generous reliefs remaining in place.
Conservative MP Claire Coutinho, shadow minister for women and equalities, shared her dismay over the bakery's closure, calling it "heartbreaking" and urging the government to "stop choking small businesses into extinction."