Croydon history: the always-busy, ever-dependable Coughlans in the Allders Arcade. Both are now just fond memories of a bygone town centre
175 jobs to go across south London, Surrey and Sussex as family-run bakery based in Thornton Heath goes into voluntary liquidation
Coughlan’s bakers, their daily bread a staple of Croydon’s high streets for almost 90 years, has ceased trading.
The shock announcement was made on social media late yesterday by Sean Coughlan, the third generation to run the Thornton Heath-based family business. Around 175 jobs are likely to be lost across the company’s 31 stores across south London, in Surrey and Sussex.
Coughlan’s survived a World War, several financial disasters and, mostly, the covid lockdown (though no thanks to Croydon Council’s shambolically slow distribution of emergency grants).
But according to Coughlan, what they could not survive was Labour Chancellor Rachel Reeves’ employers’ National Insurance increase, a rise in business rates and the latest heatwaves in May and June.
Coughlan also cited other pressures on business that had contributed to the decision, such as the doubling of the company’s fuel bill since the start of Donald Trump’s war on Iran.
Emotional announcement: Sean Coughlan breaking the news about the closure
Coughlan referred to making the closure announcement as something “that I never thought I would have to do in my lifetime”.
Coughlan says that he and the company’s directors had taken the decision to put the firm in voluntary liquidation in order that they might settle their bills with suppliers and pay their staff’s wages.
He said: “Rates have absolutely smashed local retail.
“We’ve had everything thrown at us, sadly, and… all of our ingredients have gone through the roof… and the nail in the coffin has been these two heatwaves when nobody seems to come out. We literally take about 50% of what we would normally take in a normal week, with our outgoings still exactly the same.
“It’s absolutely heartbreaking.”
He said he is “devastated”, as 41 members of the Coughlan family had worked within the business over its 89 years.
“Actually, change that: 42. Romesh is an honorary Coughlan,” he said, referring to comedian Romesh Ranganathan, who bought shares in the company two years ago and has frequently appeared in marketing videos and behind the counters in store, after discovering a taste for some of Coughlan’s vegan products.
“Please understand we’re hurting, hurting a lot,” Coughan said.
Coughlan said that the company’s costs had recently risen by £20,000 per week. “This has affected us more than we could have ever imagined, which is so devastating, as March was a fantastic month, as was a lot of last year with our growth with new stores.
“But as soon as April’s new government rules on NI, wages and rates hit, it instantly hit the high street.
Celebrity endorsement: Romesh Ranganathan joined the firm two years ago
“It’s been our absolute honour to have served you all our tasty treats and thank you all for your incredible support and love, and we will miss you all. Thank you to all our team over the last 89 years that made Coughlans Bakery the fun environment it has been.”
Coughlan added, in reference to Ranganathan, “Fingers crossed we can do something in the future as our partnership is very special.”
And Coughlan finished the statement by saying, “Please, please, please remember to shop local. Our high streets need your love.”
Between the covid lockdown in 2020 and late 2024, Coughlans had enjoyed a four-year period of unprecedented growth, going from 19 to 31 stores, including opening a branch in Crawley, the home town of Ranganathan.
The Coughlans baker’s shops across south London, Surrey and Susex to close include:
220 High Street, Croydon; 299 Lower Addiscombe Road; the Thornton Heath head office and bakery at 21-29 Sandringham Road; 188 High Street, Beckenham; 99 Station Road, West Wickham; 913 Brighton Road, Purley; 92 High Street, Banstead; 2 Chaldon Road, Caterham on the Hill; 17, Croydon Road, Caterham; 223 Chipstead Valley Road, Coulsdon; 130 Brighton Road, Coulsdon; 4 Maidenbower Square, Crawley; 259 Brighton Road, South Croydon; 502 London Road, Thornton Heath; 136 High Street, Dorking; 3 Horton Retail Centre, Pelman Way, Epsom; 9 Forestdale Centre, Featherbed Lane; 77 High Street, Godstone; 78 Victoria Road, Horley; 102 Blackbridge Lane, Horsham; 1 Piries Place Shopping Centre, Horsham; 21 High Street, Lingfield; 9 Waterhouse Lane, Kingswood; 33 Nork Way, Banstead; 1a Lacey Green, Coulsdon Road, Old Coulsdon; 76 Station Road East, Oxted; 14 High Street, Reigate; 32 The Broadway, Stoneleigh; 5 The Parade, Stafford Rd, Wallington; 58 Woodcote Road, Wallington; 401 Limpsfield Road, Warlingham; 15 High Street, Westerham; and 99 Station Road, West Wickham.
Coughlans’ announcement brought hundreds of messages of goodwill and sadness at the news.
“Absolutely gutted for you all,” said one of Facebook. “Being forced into having to make this decision that affects all your team through no fault of your own.
“This government have crucified so many great businesses over the last 2 years through poor decision-making and this is another prime example. Have loved buying your products over the years and as a vegan, one of the few bakeries where the majority of your range was suitable.”
First venture: Jack Coughlan opened his baker’s shop on the corner of Mayday Road in 1937. It continued trading there until yesterday
Another wrote: “So sorry. You only have to read some of the comments to realise this was not just a great family business that has suffered, it is umpteen high streets, people and communities. Shows the character of the firm to come out and be so honest with everyone. You let nobody down and have contributed so much to so many.”
One social media commenter put things succinctly: “I will never find another jam doughnut like a Coughlan’s jam doughnut.”
While another said: “I am so so sorry to hear this news. Your family has been part of the fabric of my home town of Croydon for all of my life and it’s so sad to see that go.”
Some noted memories of ordering cakes from Coughlan’s for special occasions down the years, including one who had their wedding cake from the bakers 50 years ago.
Some customers had not given up hope, though: “Can’t believe you’ve had to do this and just so so sad. If I have the winning Euro lottery ticket for tonight I would bail you out to keep going.”
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A marginal business with little in reserve. To blame NI is easy, these & NNDR increases are announced in advance at the Autumn Statement. What killed them off were the energy costs caused by Trump. They probably never fully recovered from the madness that were Covid-19 lockdowns.
There is lots more to come on this story…
We trust you
Thank you.
We never publish rumours, nor anything that “some bloke down the pub told me…” (nothing against pubs, or men, but it is hardly first-hand information), nor Reddit or any of the other unmoderated “social” sites that give internet trolls a licence to say whatever they like, without any checks or editorial integrity.
We’re looking into this. We’ve checked the public record. We’ve asked Coughlan’s workers to come forward, anonymity assured.
Oh, and we’ve also put in requests for comment to those at the centre of the situation, because that’s what we do.
Er, Coughlans didn’t close during the Covid-19 lockdowns, which weren’t madness but life-saving
People might feel sorry for the family, but where does this leave residents? Being they held the monopoly of bakers shops over the region, we now have virtually none. Not everyone likes Supermarket bread. Would it not have been better to sell off individual shops?
Many large Supermarkets like Sainsbury’s bake from fresh every day up and down market. You can see them taking the bread out the ovens. I think I’ve been in a Coughlans one in the last 10 years. Their shops seem to be in slightly out of the way places and whilst some may have seating I don’t think of them as a cafe. Several seem to move about and pop up then disappear then pop up again… Perhaps they lost their USP? What were they for? They didn’t seem to have a signature product that I could think of… I suppose they sold freshly baked cakes which is a niche… but then as I say I haven’t been in. Neither do I walk past one anymore because they don’t seem to be in high football areas … Krispy Kreme still manage to sell doughnuts by placing themselves in the middle of the Whitgift Centre and minimising their staff to seemingly one person whilst having done a deal with the big Supermarkets. When I did go in to Coughlans I noticed they didn’t seem to have a loyalty card scheme. How then do you capture customer data to directly market? This may have changed… looked nice from outside, I’ll give them that …but I didn’t venture in except once and when I did there wasn’t a queue exactly. I bought a nice cake but I can’t remember what it was… Perhaps they should have done a Starbucks and assiduously avoided paying corporation tax with a devious high royalty and licensing payment scheme that leaves you constantly picketed by fair tax campaigns and always there whilst always technically making a loss for tax dodging purposes whilst the owning corporation makes a healthy profit so that you only have to make tax payments grudgingly when the boycotts finally hit your bottom line … With their rapid expansion and collapse and inconspicuous marketing it may be Coughlans did an Allders … Who knows…? It’s a tough market and people have little disposable income these days. Still very sad.
Would have been nice for them to notify their staff who woke up to no jobs, before social media.
Thanks Jane. I wonder if you know of any other former employees who might get in touch with us? Anyone who cares to share their experience of the Coughlan’s closure can email us completely confidentially.
Used to go to coughlans a lot, but they stopped doing their big danish pastry and prices went up. So stopped going
Croydons ridiculous parking prices and hated app only payment was the final nail in the coffin
Bring back cheap parking or more will close
What a load of whinging bollocks. Are you Jason Perry in disguise?
Such a shame what happened to Coughlans. They dropped the “Patisserie” part of their name around the time of Brexit. In their day, they provided a better service than Greggs. There was a branch in Purley with a tea room which was regularly busy.
The bakers on Tudor Parade Old Coulsdon is still going strong after I don`t know how many years. Bread and cakes still made the old fashioned way.
Like many businesses doubtless running on thin margins already in a tough trading environment against the “pile-em-high-sell-‘em-cheap” competition such as Greggs. Reeves’s fully costed budget for growth has been the final nail in many a business coffin and many more to come.