Major UK bakery chain plunges into liquidation - all 109 shops closing down
The man ordered a £5 to-go bag from a popular bakery (stock image) (Image: Getty Images)A beloved British bakery chain shuttered all of its stores earlier this month after accumulating a shortfall of nearly £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 expanded across the city, opening numerous branches and earning a strong reputation for its extensive selection of baked goods, including pastries, bread, cakes and filled rolls.The business announced its closures on March 30 via Facebook, stating that the stores would shut their doors due to "relentless" cost increases.The family-run chain declared they were unwilling to endure another year of uncertainty and crippling overheads, including soaring energy bills.Liquidators Begbies Traynor, who are in the process of winding down the company, shed further light on its financial position in a Statement of Affairs submitted on April 27.This revealed that the business's estimated total deficiency — the amount it would owe after liquidating all its assets — stood at £778,904.29.The document further outlined that the total assets available for preferential creditors amounted to just £7,136.67.Liabilities for preferential creditors alone, including employees (regarding arrears/holiday pay) and HMRC (to cover taxes), total £111,074.41.A further £203,514.42 was identified as "unsecured employee claims". The document reveals that thousands more are also owed to other parties, including lenders and finance providers, trade creditors, and the Routledge family itself.At the time of the closures, the bakery issued 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 mean 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 stated that 2025 was "one of the toughest years we have ever endured".
