Highlights
- Managing director Sean Coughlan says rise in employer National Insurance and business rates cost firm an extra £20,000 a week
- Ranganathan, who became a shareholder in 2024, called himself "gutted"
- Founded in 1937, family-run bakery had stores across Kent, Surrey, West Sussex and south London
COUGHLANS BAKERY, an 89-year-old family-run chain part-owned by comedian Romesh Ranganathan, has ceased trading after going into voluntary liquidation, its managing director said this week.
Sean Coughlan, in a video posted on Instagram, said he was "devastated" to announce the closure, blaming a rise in employers' National Insurance contributions, higher business rates, a spike in fuel costs and a recent heatwave for pushing the business under.
"We are obviously devastated. We never thought we would be in this boat, and up until March everything was going really swimmingly," Coughlan was quoted as saying. "But then literally on April 1, we had extra National Insurance payments that have been put on us by the government."
Ranganathan, best known for his deadpan stage style and for shows including A League of Their Own, The Weakest Link and Rob & Romesh Vs..., became a shareholder in the bakery in 2024, describing the deal at the time as "the partnership of the century".
He is vegan and had backed the chain in part for its range of plant-based products, the BBC reported.
The comedian reposted Coughlan's video to his 1.4 million Instagram followers with the caption: "Gutted isn't the word." He later commented on the post: "You've not let me down mate! Much love."
'Nail in the coffin'
Coughlan said the combined pressures were costing the business an extra £20,000 a week. The firm's fuel bill had doubled from £3,000 to £6,000 a month amid an energy price spike linked to the conflict in the Middle East, he said.
"Rates have absolutely smashed local businesses, local retail," Coughlan said, adding that the recent heatwave across southeast England was the "nail in the coffin", with takings falling by around half while outgoings stayed the same.
The Telegraph reported that the closure follows a £26 billion increase in employers' National Insurance contributions announced by chancellor Rachel Reeves in her maiden Budget, along with a rise in the minimum wage.
The British Retail Consortium has previously warned that businesses faced a "tipping point" on business rates, estimating firms in England pay around £27bn in rates annually.
Coughlans was founded in 1937 by Jack Coughlan and had been run by three generations of the family. Its stores span Kent, Surrey, West Sussex and south London, including branches in Croydon and Coulsdon. The company said the decision to enter voluntary liquidation was taken to ensure it could still pay suppliers and staff.
In a statement, Coughlans thanked customers and staff, adding: "Thank you to all our team over the last 89 years that made Coughlans Bakery the fun environment it has been... a massive thank you to our newest family member Romesh." It urged the public to "shop local", saying "our high streets need your love."
Customers reacted with dismay on social media, with one describing themselves as "utterly heartbroken for the whole team".
