The demise of much-loved Devon bakery chain Crusty Cob has risen to the highest levels of government. The closure of the long-standing bakery chain was raised in the House of Commons, with ministers debating the economic pressures squeezing small businesses across the UK.
David Reed, Conservative MP for Exmouth and Exeter East, challenged the government on its support for the hospitality industry. Speaking in Parliament, he highlighted the closure of The Crusty Cob, a family-run bakery that shut all nine of its shops earlier this month, leaving over 100 people unemployed.
“The Crusty Cob bakery has been a constant in east Devon for the past 55 years, but last week the family-run business closed the doors on all nine of its shops, making over 100 local people redundant,” Mr Reed said.
“The owners stated a panoply of issues, from manufacturing costs to reduced high street footfall and energy prices, but the kicker is the decision that this Business Secretary’s party has made to slam companies with increases to the national living wage and employer national insurance contributions. The effects of this Labour Government’s decisions are setting in and literally destroying working family businesses. Will the Business Secretary and the Minister please give a message to The Crusty Cob team who have just lost their jobs?”
Gareth Thomas, the parliamentary under-secretary of state for business and trade, responded by acknowledging the difficulties facing former employees of The Crusty Cob.
“I understand that this will be an extremely worrying time for employees of The Crusty Cob and their families,” Mr Thomas said. “I gently say to the hon. Gentleman that we are offering a 40% discount to retail, hospitality and leisure properties as part of our business rates package. We are going to reform business rates more substantially, with a permanently lower multiplier in 2026 that, while it clearly will not help The Crusty Cob and its employees, will help other businesses on the high street.”
Mr Thomas also pushed back against Mr Reed’s criticism of the living wage increase, questioning whether opposing the rise was Conservative policy. He further pointed to data from the Office for National Statistics indicating job growth across the UK in the past year.
The Crusty Cob’s directors had announced the closure in a media statement, attributing it to a shrinking high street customer base, inflation, energy costs, and wage and national insurance increases.
“After 55 years of operations and four generations of the Tubbs family, the three directors have made the difficult decision to close our doors,” the statement read.
Joint director Neil Tubbs revealed that the company had been on the market for two years but failed to secure a buyer.
“We found a buyer 10 months ago, but couldn’t get the deal over the line,” the Tubbs family told British Baker.
The bakery chain, founded in 1969 in Ottery St Mary, expanded to locations in Exmouth, Exeter, Tiverton, Burnham-on-Sea, Honiton, Budleigh Salterton, and back in Ottery St Mary. At its peak, it employed 90 shop staff, eight bakers, and four delivery drivers.
Despite the closure, Mr Tubbs said that around 20% of staff had already found new jobs, though the liquidation process was still in its early stages. The company confirmed that bakery assets would be sold off.
The Crusty Cob is the latest in a growing list of bakery closures. Lancashire-based Oddie’s and Cumbria’s Grange Bakery have also ceased trading due to economic pressures, raising concerns about the future of independent bakeries in the UK.
