Major UK bakery chain plunges into liquidation – all 109 shops closing down | UK | News
Man orders a £5 takeaway from a popular bakery ( stock image ) (Image: Getty Images)
A beloved British bakery chain closed all its stores earlier this month after accumulating a deficit of around £779,000, according to newly filed Companies House documents.
Routledges was first established in 1917 by the Routledge family on Brook Street in Carlisle.
Over the past century, the bakery has expanded throughout the city, opening numerous branches and building a strong reputation for its wide range of baked goods, including pastries, bread, cakes and filled sandwiches.
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The business announced its closure via Facebook on March 30, stating that the stores would close their doors due to “relentless” cost increases.
The family-run chain said it was unwilling to endure another year of uncertainty and crippling overhead costs, including rising energy bills.
Liquidator Begbies Traynor, who is in the process of winding up the company, shed further light on the company’s financial situation in a Statement of Affairs submitted on 27 April.
This revealed that the business’s estimated total deficit (the amount it would owe after liquidating all its assets) was £778,904.29.
The document also states that total assets available to privileged creditors are only £7,136.67.
The liabilities of privileged creditors alone, including employees (related to arrears/holiday payments) and HMRC (to cover taxes) total £111,074.41.
A further amount of £203,514.42 was described as “unsecured employee claims”. The document also reveals thousands more are owed to other parties, including lenders and finance providers, trade creditors and the Routledge family itself.
At the time of the closure, the bakery released a statement explaining its decision with “incredibly heavy hearts.”
Routledges said: “This wasn’t something we thought we needed to write.
We have encountered continuous increases in our operational and material costs since the end of 2024.
“This, along with minimum wage increases, business rates increases and the fact that there will be further increases in energy prices when we renew our contracts in the coming months, mean our operational costs alone will be over £80,000 by 2025.”
“At the same time, we have seen a continued reduction in street traffic.”
“So, with incredibly heavy hearts, we made the decision not to live through another year of rising costs and uncertainty.”
“Routledges has closed permanently after 109 years.”
The company also stated that 2025 is “one of the most challenging years we have ever endured.”
