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A UK bakery chain that announced the closure of all eight of its stores earlier this month had a shortfall of nearly £779,000 around the time it folded, according to newly-filed Companies House documents. The very first Routledges shop was opened as a bakery on Brook Street, Carlisle, during 1917 by the Routledge family.

In the following decades, branches were added across the city. Routledges became known for its wide range of baked goods, including pastries, bread, cakes and filled rolls. But on March 30, the team announced on Facebook that its entire estate of shops was to close after facing "relentless" costs increases. Explaining the decision, bosses of the family-run chain said they were not willing to face another year of uncertainty and crippling costs, such as increased business rates and energy costs.

A Statement of Affairs submitted on April 27 by liquidators from Begbies Traynor, who are winding down the company, gives a clearer picture of Routledges' financial struggles.

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It revealed the business' estimated total deficiency (the amount it would still owe after selling everything it owns) was £778,904.29 at the time.

The document suggested that estimated total assets available for preferential creditors, i.e. those with legal priority, was just £7,136.67.

However, the liabilities for just preferential creditors, including employees (regarding arrears/holiday pay) and HMRC (to cover taxes) are £111,074.41.

A further £203,514.42 was identified as "unsecured employee claims". Thousands more are owed to a number of other parties, including lenders and finance providers, trade creditors, as well as the Routledge family itself.

The outlet noted that the estimates reflect the financial circumstances time of the document's publication, and the final amount liquidators recover for creditors can change as they assess claims and assets are realised.

In its statement announcing the closure of its stores, 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."

Routledges also said in the statement that 2025 was "one of the toughest years we have ever endured".