A BAKERY chain is forced to close branches as bills rise from £2k to an eyewatering £10k
Alex Gooch bakeries in Wales has shut down two of its branches due to “crippling” energy costs.
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The artisan baker whose products are supplied to clients including Waitrose started his business in 2007.
Speaking to local news outlet Wales Online, Mr Gooch said the main reason for the closures was an “astronomically high” rise in energy prices.
Mr Gooch has four shops in total and has shut down his Llandaff Road premises in Canton and the Park Road shop in Radyr.
Branches in Whitchurch and Monmouth will continue trading.
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The business owner said that at the start of 2022, he was paying roughly 13p per unit of energy but that has risen to more than 70p per unit.
He said: “It used to be that we’d pay £1,500 or £2,000 a month, going from that to £10,000 a month is just crazy.”
Mr Gooch believes that there should be more support from the government and energy firms to prevent a crisis among small businesses.
Fans of the award-winning breadmaker share the same views and have taken to social media to share their thoughts on the closure.
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One person said: “Gutted for him, his bread’s class.”
Another added: “Small businesses on the high street or small workshops just get ripped off all the time.”
While a third commented: “Something needs to be done about this greed NOW.”
Many businesses are struggling to keep afloat with rising rents and energy costs.
In November 2023 a poll revealed that more than three-quarters of business owners are losing sleep worrying about their company.
The research also revealed that six in 10 found 2023 as one of their most stressful years yet.
The rising cost of living along with rent and energy increases have left not only small businesses but also bigger retailers shutting up shop.
Large chains including Paperchase and Wilko both fell into administration last year vanishing from the high street completely.
Other big retailers such as Marks and Spencer and Boots also closed down some locations, although M&S did also open some new stores.
A lot of people just do not have the extra cash to spend on the high street, and right now that is not showing signs of improving.
This month millions of Brits will see their energy bills rise by almost £100 a year within weeks due to the rise of the energy price cap.
Unlike small businesses, households are to a certain degree protected by the energy price cap that was introduced on January 1, 2019.
It rose this month from its lowest figure of £1,834 to £1,928.
On top of this, other household bills are also set to rise by up to £340 in 2024 – we have the full list.
Many retailers have already earmarked some closures in the forthcoming months.
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Clothing retailer Jack Wills, Poundland and Next are all poised to pull the shutters down on on some locations this year.
We have the full list of high street retailers and pub chains closing branches in January.
This post first appeared on thesun.co.uk
