A popular North Yorkshire bakery has closed its shops due to rising energy bills, but the business will still sell its products online.

Costello’s announced the decision as business and political leaders demanded ‘instant action’ from new Prime Minister Liz Truss to tackle rocketing fuel bills, which threaten so many businesses.

The 23-year-old bakery said on social media: “You may have seen that our high street shops in Driffield, Malton and Wetherby are closed - the decision has now been made to keep them closed permanently and we want to explain our reasons why to you.

“The costs involved in running the shops is now too high to continue,” said couple James and Louise Costello.

They further explained this year has been “the most challenging to date” and they couldn’t see it getting better any time soon.

They had faced the “impossible situation” of rising energy bills, staff shortages and supplier costs rising by a minimum of 25 per cent.

“Taking the business as a whole, our electricity bill has gone from £19.5k a year to £105k a year- yes, you read that right, an increase of over £8750 a month.

“We’re honestly not exaggerating. I wish we were.”

The couple continued: “We just cannot afford that and we don’t have a solution. We’re a small business and we just don’t operate with that amount of spare cashflow. Our energy bill is now more than our rents combined and that is an awful lot of coffee and cakes to try and sell and make ends meet.”

The post says rising costs forced the business to close its Driffield shop in May and in April, when it’s lease ended, rising rents meant closing Malton too. Then, last Wednesday, came the decision to close Wetherby- their last remaining shop.

“There is a clear patter here- as each shop has fallen out of their existing energy contract, they have each incurred such high rises that we simply can’t keep them operational.”

However, the couple said it was ‘n”t all doom and gloom” and as they saw ways through the pandemic, they would continue, noting many customers already bought online.

They said people can call in at their factory outlet shop near Sutton-in-the-Forest just outside York and with costs lower, they could help pass savings on to reduce many prices, with a new range of treats under £10.

They added: “We have lots more planned for the future here and whilst we may not be in as many locations, we’re still very much here to stay. Thank you for your support.”