Family-run chain Coughlans Bakery has gone into liquidation and closed all 32 of its shops across south London, Surrey, Kent, and West Sussex.
Founded in 1937, the third-generation business had continued expanding southwards from its base in Croydon, with most recent openings in Horsham last year. These were supplied from its 25,000 sq ft production site in Thornton Heath – a historic bakery said to have been going for around 200 years – which it acquired in 1971.
In a video posted on the company’s Facebook page yesterday evening (30 June), managing director Sean Coughlan said: “I sit here with a massively heavy heart, and to break the news that I’d never thought I’d have to do in my lifetime. Sadly today, our lovely Coughlans Bakery has ceased trading.”
A visibly emotional Coughlan confirmed the company had made the decision to go into voluntary liquidation so it could ensure they could pay off their suppliers and staff “without taking it to the next step where we can’t”.
“We are obviously devastated. We never thought we would be in this boat, and everything was going swimmingly up until March,” he added.
However, the bakery business – which in late 2024 welcomed TV comedian Romesh Rangathan onboard as a shareholder – was put in serious financial trouble from 1 April as latest hikes to National Insurance Contributions and minimum wages kicked in, adding £20k per week to their costs. This was compounded by business rates that Coughlan said has “absolutely smashed local retail” and the war in Iran that resulted in its monthly fuel bills going from £3k to £6k as well as further increases to the cost of ingredients.
“We’ve had everything thrown at us, sadly,” continued the MD. “And then probably the nail in the coffin has been these two heat waves where nobody seems to come out. We literally take 50% of what we’d normally take in a week, with our outgoings still exactly the same.”
As the grandson of founder Jack Coughlan, Sean had grown up working shifts during school holidays before moving into a permanent role as a baker, while his sisters Virginia and Jackie were employed as head of retail and company accountant, respectively. In 1998, the siblings took over the reins of the firm from their father Peter, assuming board positions.
In his video post, Coughlan revealed there had been 41 members of his family working at the bakery over its 89 years of operations – updating the number to 42 to include Ranganathan as an “honourary Coughlan”. The director recalled having had a great time every day he’d worked with the comic, and admitted he felt they’d let him down due to the closure. “Everything he’s done has just come from the heart,” said Coughlan, adding his hope to do something with Ranganathan again in the future.
Most recent accounts filed by Coughlans for the year ended 30 September 2025 indicated it was on a path back to profitability with losses reducing from £229.6k in FY24 to £98.8k. Although its estate size remained static in 2025 as it opened two new stores and closed two others, turnover increased by 9% to reach £6.8m. It added 11 new employees to its workforce during the financial year, up to 176.
Signs on shop doors and windows this morning confirmed the closure. The company has been contacted for further comment.
Just last week, another family-run bakery chain in Norfolk, Kellys Bakeries, was forced to call in liquidators and shut its three shops after rising costs wiped out its profitability. The same reason accounted for Routledges The Bakers’ closure of all seven of its shops in Carlisle earlier in the year.
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