A UK bakery chain has shut all of its stores after accumulating a shortfall of nearly £779,000, according to newly filed Companies House documents. Routledges, which was first opened in 1917 by the Routledge family on Brook Street in Carlisle, closed its doors for good after 109 years.
Over the past century, the bakery expanded across the city, opening numerous branches and building a strong reputation for its extensive selection of baked goods, including pastries, bread, cakes and filled rolls. The company announced its closures on March 30 via Facebook, citing relentless cost increases as the primary reason for shutting down.
Financial Details Revealed
Liquidators Begbies Traynor, who are overseeing the winding down of the business, provided a detailed picture of the company's financial position in a Statement of Affairs submitted on April 27. The document revealed that the business's estimated total deficiency — the amount owed after liquidating all assets — stood at £778,904.29. It also highlighted that total assets available for preferential creditors amounted to just £7,136.67.
Liabilities for preferential creditors alone, including employees owed arrears and holiday pay, as well as HMRC for outstanding taxes, totalled £111,074.41. A further £203,514.42 was identified as unsecured employee claims. The document reveals that thousands more are owed to various other parties, including lenders, finance providers, trade creditors, and the Routledge family themselves.
Reasons for Closure
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 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 further noted that 2025 was one of the toughest years we have ever endured.
