‘Heartbreak’ as Burnley bakery for sale due to rising energy bills

Owner Hannah Greenwood, 28, announced Bella’s Bakes, in Manchester Road, Burnley, has put its building up for sale after five years of trading.

Despite it being the first year of business, Hannah had a “brilliant” year trading in 2018 but then Covid hit and the shop was forced to shut during lockdown, which knocked the business back.

After bouncing back, Bella’s Bakes took another hit in 2022 as Hannah’s business was burnt by rising energy and ingredient costs, and she said she hasn’t paid herself a wage for nearly a year.

She said: “After lockdown, we honoured our prices despite the cost of everything going up, but that meant our profit margin was eaten into.

“The cost of everything from eggs, butter, jams, cake boards and boxes went through the roof. The cost of icing has gone from £25 to £45. Sunflower oil has doubled.

"My mortgage has gone up more than £100 a month and my monthly bills have increased by around £500.

“Pre-Covid I had six staff but now I’m down to three. I haven’t paid myself for around a year because I just can’t afford to. I’m lucky to be running on my boyfriend’s wage for the time being.”

Yoda cake made by Hannah (Image: Hannah Greenwood)

Hannah offered a bespoke cake and says she felt justified when increasing the price, because customers know how much work goes into a cake that takes two days to make.

“It’s a luxury," she said, "but I don’t feel justified passing the costs on to customers who come in maybe once a week for a chat over a coffee and cupcake or brownie because I know they can’t afford it.”

Hannah believes banks “should be more supportive” of business owners and offer more time to start paying Covid loans back.

She said: “I’ve got to pay back the Bounce Back loan and they’re constantly on me about that, but I’m not making more money.

“At the time the banks were so helpful – they couldn’t do enough, now they just want the money back. There are no grace periods which is what’s making me really struggle.

“I’m okay now but the past few months have been awful for my mental health. There’s sleepless nights and constant worry, it’s been difficult.”

Bella’s Bakes isn’t the only bakery in East Lancashire that has been struggling with the troubling economic times.

In September last year, Finch Bakery in Great Harwood, and Doe Bakehouse spoke about how the cost of living crisis has impacted business drastically and in December, Tastebuds, a bakery in Whalley, had to close alongside several other local businesses across the county.

Hannah added: “This has been a really hard, emotional decision. I’m heartbroken that I can’t make it work, but I’m sure I will be continuing to make gorgeous bespoke cakes for many years to come- just in a different setting.”

Councillor Gordon Birtwistle for Coalclough with Deerplay said: "I am desperately sorry to hear that Bella’s Bakes is closing. Over recent years Bellas Bakes has become known as a business that provided high quality cakes for family events across the area.

"Unfortunately, the business has got caught up like other local businesses in the economic nightmare that is sweeping the Country.

"My family were customers of the business, and the loss will be felt by many other families in the area who over recent years have enjoyed the treats that were provided by Bella and her staff.

"I hope that the staff of the business are successful in continuing their careers of choice following this unfortunate setback."