A UK bakery chain that had been operating for over a century has permanently closed all of its stores after amassing debts exceeding £700,000. The family-run business cited relentless cost increases as the primary reason for its closure.
Financial Shortfall Revealed
According to recent documents filed with Companies House, Routledges faced a deficiency of nearly £779,000. The company entered liquidation earlier this month after shutting its doors on March 30. Liquidators Begbies Traynor, appointed to wind down the business, submitted a Statement of Affairs on April 27 detailing the financial situation.
The statement revealed that the estimated total deficiency—the amount owed after selling all assets—stood at £778,904.29. Total assets available for preferential creditors were only £7,136.67, while liabilities for preferential creditors, including employee arrears and holiday pay as well as HMRC taxes, amounted to £111,074.41. An additional £203,514.42 was identified as unsecured employee claims. Thousands more were owed to lenders, finance providers, trade creditors, and the Routledge family itself.
A Century of Service
Routledges was first established in 1917 by the Routledge family on Brook Street in Carlisle. Over the decades, it expanded to multiple branches across the city, becoming renowned for its wide range of baked goods, including pastries, bread, cakes, and filled rolls.
Announcement of Closure
The bakery announced its closure on Facebook on March 30, stating that the decision was made with incredibly heavy hearts. The statement read: "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 added that 2025 was one of the toughest years it had ever endured.
