Bakery chain co-owned by Romesh Ranganathan closes as boss blames Labour's tax hikes for 'devastating' decision

Published: 16:09, 1 July 2026 | Updated: 16:25, 1 July 2026 A third generation bakery chain co-owned by comedian Romesh Ranganathan has announced it is shutting its doors after nearly 100 years in the business.  Coughlans Bakery, which was founded in 1937 and spanned across 31 stores in the UK, shared its decision to go into voluntary liquidation this week. In a video shared across social media on Tuesday, co-owner Sean Coughlan said the move was made to ensure both staff and suppliers were paid.  Mr Coughlan described being 'devastated' by the bakery's shutdown, linking the reason behind the decision to rising pressures felt from an increase in tax and spiking fuel prices.  In April, businesses were hit with extra National Insurance payments and wage increases - the consequences of which blazed through the nation's hospitality sector, putting businesses UK-wide into financial insecurity.  The measures were announced under Rachel Reeves's Autumn Budget 2025, and only came into force this year.  Describing business as going 'swimmingly' in March, Mr Coughlan, who is also the managing director, said: 'Rates have absolutely smashed local businesses, local retail.'  The company was hit by an extra weekly bill of £20,000, he explained, while the fuel bill alone doubled from £3,000 to £6,000 due to the crisis in the Middle East. In a video shared across social media on Tuesday, co-owner Sean Coughlan announced the closure of the bakery chain Mr Coughlan paid tribute to Romesh Ranganathan, describing him as an 'honorary Coughlan', after he bought a stake in the business in 2024 Meanwhile, the UK's recent heatwave was the 'nail in the coffin' for the company's demise as stores suffered from a drop in business of 50 per cent, with customers rather choosing to dine-in.   The decision to shut-up-shop had 'affected us more than we could have ever imagined', he added.  Mr Coughlan paid tribute to Mr Ranganathan, describing him as an 'honorary Coughlan', after he bought a stake in the business in 2024.  Giving thanks to the team over the 89 years of business, Mr Coughlan added: 'A massive thank you to our newest family member Romesh, you've been incredible, kind, compassionate and we've had so much fun together.  'Fingers crossed we can do something in the future as our partnership is very special and you will be my family forever.' 'I feel like we've absolutely let him down. Everything he's done, it's been from the heart,' Mr Coughlan added.  Mr Ranganathan, known for A League of Their Own, commented on the post: 'You've not let me down mate! Much love.'  The star, who is also famed for his podcast alongside Rob Beckett Rob & Romesh Vs..., shared the post, writing: 'Gutted isn't the word.'  The bakery, founded by Jack Coughlan in 1937, serves a wide range of vegan options baked using 'the best British ingredients' across 31 stores, including in Chessington, Surrey (pictured) The comedian, who is vegan, was captured appearing behind the counter of the family bakery, sporting the chain's merchandise, including a hoodie branded 'Straight Outta Coughlans' The bakery, founded by Jack Coughlan in 1937, serves a wide range of vegan options baked using 'the best British ingredients'. The plant-based delicacies captured Mr Ranganathan's interest who was invited to invest in the business in 2024.  The comedian, who is vegan, was captured appearing behind the counter of the family bakery, sporting the chain's merchandise, including a hoodie branded 'Straight Outta Coughlans'.  Conservative MP Claire Coutinho joined the flock of fans taking to social media to post their upset over the news.  Ms Coutinho, who is the shadow minister for women and equalities, shared the post, with the caption: 'Utterly, utterly heartbreaking. Coughlans Bakery was one of the BEST places locally for a sweet treat. 'So sad for Sean, Romesh and the whole team. Government must stop choking small businesses into extinction.' The bakery's closure comes as one-in-six hospitality businesses in the UK say they are at risk of closing down over the next year.  The survey - conducted by UK Hospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster - found almost a quarter of respondents were operating at a loss.   Comedian Mr Ranganathan is known for A League of Their Own and for his podcast alongside Rob Beckett Rob & Romesh Vs... (pictured at the BAFTA awards in 2014) Meanwhile, 305 establishments have closed down between January and March 2025 - working out at around three closures per day.   Kate Nicholls, who is the chair of Hospitality UK, told the Daily Mail: 'Hospitality has faced more than £5billion in cost increases over the last two budgets, adding to its already excessive tax burden - the highest in the economy.  'This is taking its toll on businesses and jobs, with one-in-six hospitality venues now at risk of closure and a quarter are operating at a loss. 'These businesses are the bakeries, cafes, restaurants, bars, and pubs that are the beating heart of our high streets. Rather than adding yet more costs, the Government needs to back it and reduce the tax burden. The sector is united on how to do this – cut VAT to 10 per cent, bringing the UK in line with Europe.' A spokesperson for the Treasury said: 'We have the right economic plan. We are reforming business rates, including a £4.3billion support package to limit bill rises, while 900,000 employers – more than 40 per cent of all employers – are expected to pay no employer NICs in 2030-31.  'Generous employer NICs reliefs also remain in place.' The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. 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