Coughlans Bakery has collapsed into voluntary liquidation, closing all of its stores with immediate effect after almost 90 years on the high street.
The family-run bakery chain, which is part-owned by comedian Romesh Ranganathan, operated more than 30 shops across south London, Surrey, Kent and West Sussex.
Around 165 jobs are understood to be affected by the closure, which brings an end to a business founded in Thornton Heath in 1937.
Managing director Sean Coughlan said the decision had been taken to ensure staff and suppliers could still be paid.
In a video posted on social media, Coughlan said the business had been hit by a sharp increase in costs over recent months, including higher employer National Insurance contributions, wage rises, business rates and fuel costs.
He said the additional pressure was costing the bakery around £20,000 a week.
“Rates have absolutely smashed local businesses, local retail,” Coughlan said.
He added that recent heatwaves in the South East had also dealt a major blow to trading, with stores taking around half their normal weekly sales while fixed costs remained unchanged.
The closure comes despite signs that the business had been stabilising. Accounts filed at Companies House for the year to September 2025 showed turnover had risen to £6.8m, while losses narrowed from £229,600 to £98,800.
Coughlans had built a loyal following for its cakes, pastries, bread, sandwiches and plant-based range, and had continued to trade as an independent alternative to larger bakery chains.
Ranganathan became a co-owner of the business in 2024, having previously praised its vegan products and local roots.
The comedian shared the closure announcement on Instagram, writing: “Gutted isn’t the word.”
Coughlan thanked Ranganathan for his support and said the comedian had become part of the family business.
“Romesh has been amazing,” he said. “Everything he’s done, it’s been from the heart.”
Coughlans said in a statement: “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.”
The company added: “Please please please remember to shop local, our high streets need your love.”
The collapse will add to concerns over the pressure facing smaller high street operators, particularly labour-intensive food-to-go and bakery businesses that have been hit by rising staffing, property, energy and ingredient costs.
Employer National Insurance contributions rose to 15 per cent from April 2025, while the threshold at which employers begin paying contributions was cut to £5,000. The National Living Wage for workers aged 21 and over also increased to £12.71 an hour from April this year.
For local high streets across the South East, the closure removes a long-standing community business that had traded through three generations of the Coughlan family.
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