A 139-year-old brick factory is shutting down for good, joining the long list of business closures that have taken place in 2026.
Michelmersh Brick Holdings is shutting down its Charnwood Plant in Shepshed, Leicestershire, bringing an end to over a century of manufacturing at the site.
The factory, which specialises in traditional handmade red bricks, will cease production by the end of May. Some 28 employees will lose their positions as a result of the closure.
According to the company, the decision was attributed to demand for building materials, citing weakened consumer confidence as a significant drag on construction activity throughout Britain.
A major brick factory is shutting down in another blow to British housebuilding
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Housebuilding across the country has experienced a sharp downturn, with developers scaling back their plans due to concerns over escalating costs linked to the conflict in Iran.
Across the industry, brick dispatches during the first quarter fell by approximately 10 per cent compared with the same period in 2025.
Official data showed that housebuilding in England dropped to its lowest level in 12 years last autumn, placing significant strain on Labour's ambition to construct 1.5 million new homes before the end of the decade.
The construction sector continues to face mounting pressure as builders reassess their development strategies in response to rising costs stemming from the Middle East conflict.
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The Chancellor has promised to support housebuilders
| GETTYMichelmersh's decision to close the Leicestershire site reflects these broader challenges affecting the building materials market.
The Leicestershire factory was originally founded in 1887 as Charnwood Forest Brick, operating for more than a century before Michelmersh acquired it in 1999.
Tony Morris, Michelmersh's chairman, said the company had been seeking the "appropriate balance between production volumes and customer demand expectations" while "constantly reviewing the cadence of our manufacturing operations".
He added: "We are grateful for the service of the Charnwood team over many years, and they will leave Michelmersh with our sincere thanks for all their efforts on behalf of the group."
Businesses have struggled with the increasing tax burden | GETTYThe company will consolidate manufacturing at its Romsey, Hampshire facility, where it has recently expanded production of machine-made brick panels.
Michelmersh is considering options for the Charnwood site's freehold, including a possible sale. Rival manufacturer Ibstock reported an 11 per cent decline in domestic brick market volumes during the opening three months of 2026.
Joe Hudson, chief executive of Britain's largest brick producer, said the industry was contending with both fragile consumer sentiment and consequences of the Iran conflict.
He warned that elevated energy and fuel prices resulting from the Middle East crisis have pushed up cost inflation, which is "likely to persist into the second half of the year".