Routledges the Bakers has closed all eight of its branches after more than a century of trading, citing mounting financial pressures.
The family-run business announced it had ceased trading with immediate effect in a statement shared on Monday.
It said: "This is not something we ever thought we would have to write."
The closure brings an end to 109 years of trading in Carlisle, where the bakery had become a long-standing part of the local high street.
The business said the decision had been taken "with incredibly heavy hearts" following a sustained period of financial difficulty.
Rising operational costs and declining customer numbers were identified as the main factors behind the closure.
The company said pressures had intensified since the end of 2024 as expenses continued to increase.
Higher ingredient costs and day-to-day running expenses were among the challenges facing the business.
Routledges the Bakers closes: Carlisle chain shuts after 109 years amid rising costs
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Increases to the minimum wage and higher business rates also added to the financial strain.
The bakery said its latest rates bill had risen significantly compared with the previous year following the removal of a 40 per cent hospitality relief.
It added that future energy price increases, when contracts are renewed, are expected to push costs more than £80,000 above 2025 levels.
At the same time, reduced footfall on the high street led to lower sales, limiting the company’s ability to offset rising costs.
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The bakery operated in Carlisle
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The business had attempted to adapt in recent months in an effort to remain viable.
In February 2026, it opened a self-service outlet in Carlisle’s market hall aimed at reducing overheads.
In March, it introduced price cuts across its stores in a bid to attract more customers.
The company said these measures were not enough to counter the scale of financial pressures.
It said: "2025 was already one of the toughest years we have ever endured."
Management concluded the business could not continue facing another year of rising costs and uncertainty.
A Labour spokesman said: "We appreciate this will be a difficult time for the workers."
They added the situation remained a commercial matter for the company.
The Government highlighted a £4.3billion package aimed at reforming business rates and limiting bill increases for retailers.
Officials also pointed to wider measures intended to reduce administrative burdens and support businesses facing cost of living pressures.
The closure marks the end of a bakery that had operated since 1917 and reflects wider challenges facing traditional high street businesses.