Coughlans Bakery, which operates 31 stores across Kent, Surrey, West Sussex and south London, revealed that it had ceased trading yesterday (30 June).
Founded in 1937, the chain employs around 165 people and has been part-owned by Crawley native Ranganathan since 2024, who invested after being impressed by the bakery’s range of plant-based products.
In an emotional video posted to social media, managing director Sean Coughlan cited the government’s decision to increase national insurance contributions for employers in April last year as a key driver for the company’s demise, alongside high business rates.
Coughlan explained that the decision to go into voluntary liquidation was taken in order to ensure that the firm was able to pay suppliers and staff.
The rise in fuel prices due to the joint US-Israeli intervention in Iran was also listed as an important blow to the business’s finances, effectively doubling its fuel bill from £3,000 to £6,000.
With all of these factors converging in April to cost the bakery an extra £20,000 a week, Coughlan called the recent heatwaves the “nail in the coffin”, as stores were only able to make 50% of their normal earnings during that period, with outgoings remaining unchanged.
Writing on social media, Coughlan thanked customers, writing: “This has affected us more than we could have ever imagined which is so devastating as March was a fantastic month, as was a lot of last year with our growth with new stores but as soon as April new government rules on NI, wages and rates hit, it instantly hit the high street.
“It’s been our absolute honour to have served you all our tasty treats and thank you all for your incredible support and love and we will miss you all.”
