Butterwick bakery to close 12 of 14 stores as costs rise and spending shifts

Butterwick, a Midlands-based, family-run bakery, will close 12 of its 14 stores with immediate effect after the company said operating costs have continued to rise and customer spending habits have significantly changed.

Only the Rushden Lakes store in Northamptonshire and the St Giles Street shop in Northampton will remain open, leaving the company to wind down a footprint that once spanned throughout the Midlands and beyond. The closures affect sites in Corby ( Charter Court and Rockingham Road ), Kettering ( Market Place ), Leicester ( Highcross Street ), Market Harborough ( Church Street and Rockingham Road ), Melton Mowbray ( South Parade ), Milton Keynes ( Midsummer Place ), Oakham ( High Street ), Rugby ( Regent Street ), and Retford ( Market Place ).

In a post on Facebook, Butterwick founders Fiona and Ryan Scarborough said they were heartbroken for the impact on their team members and thanked loyal customers for years of support. The notice stressed that the decision had not been taken lightly and that every effort had been made to safeguard as many roles as possible, but the company could not sustain the business as it stood given the pressures it faced.

"It is with deep regret that we announce the closure of all Butterwick stores with immediate effect, apart from our Rushden Lakes and Northampton St Giles locations," they wrote. "This decision has not been made lightly. Despite tireless efforts to secure all stores and protect every role, the continued rise in operating costs and significant changes in customer spending habits have left us unable to sustain the business in its current form. We are heartbroken for the impact this has on our incredible team members, who have worked with such passion and dedication to deliver the warm, welcoming Butterwick experience that so many of you have come to love."

The couple added that the two remaining stores would be the focus of a renewed strategy centered on delivering a classic in-store bakery experience. They said Butterwick would reintroduce some of its most loved original products while developing new sweet treats and expanding its menu with handcrafted drinks and freshly made sandwiches. They also confirmed that any wedding or celebration cake orders placed with Butterwick would be fulfilled, and loyalty points and gift cards would remain valid and fully redeemable in the two remaining shops.

"By focusing on Rushden and Northampton, we will be returning to our roots: an authentic in-store bakery experience where craft, freshness, and creativity come first," the statement said, signaling a pivot toward core offerings and customer immediacy rather than a broad multi-site model.

The decision underscores ongoing challenges for small, family-run food retailers amid persistent operating-cost inflation, higher energy bills, supply-chain pressures, and changing consumer habits that have shifted spending toward discount options and digital channels. While large chains have weathered some of these headwinds, many regional operators have faced tightened margins and store-by-store evaluations of profitability.

Butterwick opened its first shop in Corby, where the family began baking in a modest space, and built a local following with signature loaves, pastries, and custom cake orders. The closures, announced this week, mark a significant downsizing that will reduce the brand’s geographic footprint but aim to preserve the core Butterwick experience for customers in Northamptonshire.

For staff and the communities that relied on Butterwick’s presence, the news carries immediate implications. The founders emphasized that they would work with remaining teams to transition through the closure period, and thanked employees for the dedication that helped create Butterwick’s regional reputation. Local customers who have come to rely on Butterwick for wedding cakes, birthday celebrations, and everyday bakery staples will be watching how the two remaining stores evolve under the renewed focus.

As Butterwick narrows its operational scope, analysts note that such restructurings are increasingly common in the current retail environment, where small food retailers face a confluence of rising costs and changing shopping patterns. The company’s leadership indicated they would continue to monitor market conditions, with a view to ensuring the two surviving locations can sustain the business and its brand heritage going forward.

In the coming months, customers can expect the two open Butterwick stores to spotlight a refreshed lineup that leans into nostalgia while also exploring new, craft-forward items. The plan envisions a more intimate in-store experience where customers can observe product preparation, benefit from shorter wait times, and enjoy a curated selection of beverages and freshly made sandwiches alongside signature cakes. Whether this strategy will be enough to rebuild momentum remains to be seen, but for now the focus remains on delivering quality through a more focused footprint.

This development places Butterwick among a growing segment of regional bakery and cafe operators recalibrating to survive in a tightened, cost-sensitive market. The coming months will reveal whether a leaner, more concentrated model can deliver sustainable growth and preserve the brand’s distinctive artisan identity across its two remaining locations.