Coughlans Bakery, an 89-year-old chain with operations across Kent, Surrey, West Sussex, and south London, has ceased trading and entered voluntary liquidation, citing escalating national insurance contributions, high business rates, and soaring fuel costs. Comedian Romesh Ranganathan, who became a co-owner in 2024, expressed his profound disappointment, stating, “Gutted isn’t the word.”
Economic Pressures Force Closure
Managing Director Sean Coughlan attributed the bakery’s collapse primarily to a confluence of adverse economic conditions. He specifically highlighted the government’s decision to increase national insurance contributions for employers in April of last year, alongside what he described as “absolutely smashed local business” due to high business rates. These regulatory and fiscal burdens significantly impacted the company’s operational viability.
Further exacerbating the financial strain was a substantial spike in fuel prices, triggered by recent conflict in the Middle East. Coughlan revealed this alone added an extra £20,000 per week to the company’s outgoings, a critical burden for a multi-branch operation.
Heatwaves Deliver “Nail in the Coffin”
In addition to the systemic cost increases, Coughlan identified recent heatwaves in the south east of England, which saw temperatures reach 35C, as the “nail in the coffin” for the firm. During this period, customer footfall significantly declined, with “no-one really seemed to come out,” resulting in the business making approximately 50% of its normal weekly takings. Crucially, all operational outgoings remained “exactly the same,” creating an unsustainable deficit. “It’s heartbreaking,” Coughlan stated.
Ranganathan’s Partnership and Disappointment
Romesh Ranganathan, known for his deadpan stage style, joined Coughlans Bakery as a co-owner in 2024, a partnership he had previously hailed as “the partnership of the century.” A vegan himself, Ranganathan initially supported the business due to its extensive range of plant-based products. Sean Coughlan praised the comedian’s involvement, describing him as “amazing” and noting, “Everything he’s done, it’s been from the heart.” Coughlan added, “I feel like we’ve absolutely let him down,” reflecting the emotional toll of the closure.
Ranganathan reposted Coughlan’s video announcement to his 1.4 million online followers, underscoring his personal investment and disappointment with the terse caption: “Gutted isn’t the word.”
Community Impact and Liquidation Strategy
The closure has also resonated deeply within the local communities served by Coughlans. Josie Smith, who works near the Crawley branch, expressed her sadness, telling BBC Radio Sussex that the bakery “brings a lot of people together” and that its departure is “a massive shame.” Her colleague, Kaitlin Stinton, praised the staff, noting they were “really friendly, dedicated to their jobs, [and] always making you happy.”
Coughlan confirmed that the decision to enter voluntary liquidation was made strategically to ensure the company could still fulfill its obligations to suppliers and employees, a move aimed at mitigating broader financial fallout from the cessation of trading.
The demise of Coughlans Bakery highlights the severe challenges faced by local businesses, particularly those in the retail and hospitality sectors, grappling with a combination of increased governmental levies, volatile energy costs, and unpredictable consumer behavior influenced by environmental factors.
