UK bakery chain shuts every branch after 109 years in business as company plunges into liquidation

A UK bakery chain open for over a century has had to close the doors of all stores after owing over £700,000 in what the family business referred to as “relentless” costs increases

A UK bakery chain closed all of its stores earlier this month after having a shortfall of nearly £779,000, according to new Companies House documents.

Routledges was first opened in 1917 by the Routledge family on Brook Street in Carlisle.

Over the last century, the bakery opened different branches across the city and became well known for its wide range of baked goods, including pastries, bread, cakes and filled rolls.

The team made the announcement of their closures on March 30 via Facebook, posting that the stores will close due to “relentless” costs increases.

The family-run chain claimed they were not willing to face another year of uncertainty and crippling costs, such as hiking energy prices.

Liquidators Begbies Traynor, who are winding down the company, gave a clearer picture on the company’s finances in a Statement of Affairs submitted on April 27.

It showed that the business’ estimated total deficiency (the amount it would owe after selling everything it owns) was £778,904.29.

The document also outlined that the total assets available for preferential creditors was just £7,136.67.

The liabilities for just preferential creditors, including employees (regarding arrears/holiday pay) and HMRC (to cover taxes) are £111,074.41

There was a further £203,514.42 identified as “unsecured employee claims”.

The document shows that thousands more are also owed to other parties, including lenders and finance providers, trade creditors, as well as the Routledge family itself.

At the time of the closures, the bakery released a statement announcing their decision “with incredibly heavy hearts”.

Routledges said: “This is not something we ever thought we would have to write.

Since the end of 2024, we have faced relentless increases in our operational and ingredient costs.

“Alongside this, minimum wage increases, business rate increases and the reality of further energy price rises when we renew our contracts in the coming months means our operational costs alone will be over £80,000 higher than in 2025.

“At the same time, we have seen a continued decline in high street footfall.

“So, with incredibly heavy hearts, we have made the decision not to face another year of rising costs and uncertainty.

“Routledges has now closed for good after 109 years.”

The company also added that 2025 was “one of the toughest years we have ever endured”.