Coughlans Bakery closes, enters liquidation after 89 years

A nearly century-old bakery chain with 31 shops across southeast England has ceased trading and entered voluntary liquidation, with its management citing a combination of tax increases, high fuel prices, and recent heatwaves as insurmountable pressures. Coughlans Bakery, which first opened in 1937 and operated in south London, Kent, Surrey, and West Sussex, stopped operating on Tuesday, June 30, 2026.

Managing director Sean Coughlan announced the closure in an emotional online video, stating the decision was made to ensure the company could pay its suppliers and staff. He attributed the collapse to several financial burdens that began to accumulate earlier this year. A significant factor, he said, was the increase in employer National Insurance contributions and business rates that took effect in April, which he stated were costing the company an extra 20,000 pounds per week. Coughlan described the business rates as having "absolutely smashed local business."

The company also faced higher fuel prices following the outbreak of conflict in the Middle East in late February. Furthermore, Coughlan identified two recent heatwaves in Southeast England, where temperatures reached 35...