Norfolk-based Kellys Bakeries has called in liquidators after ingredients and energy cost increases wiped out its profitability.
The family-run firm, founded by Ian and Patricia Kelly in December 2014, was forced to close all three of its shops in towns just outside of Norwich including in Drayton, Horsford, and Lenwade.
The latter location also housed its production space, with a total of 14 jobs lost across the three premises.
Jo Watts and Andrew McTear of insolvency service provider McTear Williams & Wood were appointed as joint liquidators of Kellys Bakeries on 22 June. They confirmed the company had suffered increases in costs of stock and utilities in the years leading up to the liquidation which had a detrimental effect on profit margins.
“Even though the directors’ cut costs where possible it was not sufficient for the company to return to profit,” noted the liquidators, adding that the directors had been trying to find a buyer since the end of last year but had ultimately sought insolvency advice.
Kellys Bakeries doesnt have a website nor any social media channels, with an article about Norfolk’s finest bakeries published in 2019 on the Norfolk Norwich tourist news website saying its sites offered breads, cakes (including celebration cakes), sweet and savoury pastries, and freshly prepared sandwiches.
Most recent filed accounts for the year ended 30 June 2025 showed current and long-term liabilities totalling £58,741 while debtors were at £18, 436. McTear Williams & Wood is said to have sold the Kellys assets – comprising plant and machinery, furniture and fittings – to an unconnected party.
The bakery business has been approached for comment.
Carlisle-based chain Routledges The Bakers also failed to cope with “relentless increases” in costs and was left with no other option than to close all seven of its shops in March. Several more independent bakery brands succumbed to the same fate last year including Butterwick in Corby, Baltic Bakehouse in Liverpool, Bennetts Family Bakers in Dorset, The Almond Thief in Devon, and The Crusty Cob in Devon and Somerset.
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