Romesh Ranganathan-backed Coughlans Bakery closes after rising costs

Bakery chain Coughlans Bakery, part-owned by comedian Romesh Ranganathan, has ceased trading after claiming April’s increases to employer National Insurance Contributions and wages, alongside rising business costs, made the business financially unsustainable.

The family-run company, which first opened in 1937 and operated 31 stores across London and the south-east of England as well as an events catering arm, entered voluntary liquidation and closed its doors on 30 June.

In a video posted on Instagram, co-owner and managing director Sean Coughlan said the decision had been taken to ensure the company could pay its staff and suppliers.

Alongside the video, Coughlan wrote: “It’s with the heaviest of hearts that I’m bringing you the news that sadly we at Coughlans Bakery are closing our doors today for the last time. The last 2 months with the fuel prices from the war, new NI charges and higher rates are costing us an extra £20k per week.”

He added that the higher costs have affected them “more than we ever could have imagined”.

In the video, Coughlan said the increases to employer National Insurance Contributions, which came into effect on 1 April, alongside higher business rates, had “absolutely smashed local businesses”.

He said two recent heatwaves, during which the bakery’s stores took around 50% of its usual revenue, proved to be the “nail in the coffin”.

Despite the closure, Coughlan said the business had been performing well earlier in the year, describing March as “a fantastic month”.

Forty-one members of the Coughlan family worked in the business, which had been trading for almost 90 years. Coughlan also paid tribute to Ranganathan, saying the comedian had been “devastated” by the closure.