
Catalyst Coffee trader to close as it looks to cash in on a post-Brexit surge
Catalyst Coffee Trading Plc said on Wednesday it had decided to close its Dublin and Cork trading offices.
The company has been struggling to attract customers since a Brexit vote in June and is now looking for cash to cover a post Brexit surge in the coffee market.
It is the second Irish coffee company to shut down this year.
The closure comes as the UK Government plans to introduce a new system to protect investors from loss of profits in the event of a financial crisis.
In addition, Catalyst has closed two other locations.
In its statement, Catalyst said it had already had to cut its workforce to about 80 people.
It added that it would be able to keep on providing service in Ireland in the long term but its focus was on securing a strategic exit from the EU.
Catalyst has a long-standing relationship with Irish coffee chain St John’s Coffee, which employs about 80 staff.
It has a significant presence in the US and Australia, and has also developed a strong relationship with the Irish coffee industry.
The decision to close the Dublin and Cardiff offices follows an increase in coffee demand in Ireland after the Brexit vote.
The move comes at a time when Ireland’s coffee market is struggling to cope with Brexit’s economic impact.
It accounts for around 15 per cent of the country’s coffee sales.
EU rules require companies to offer customers in the bloc an average of six months’ notice before trading.
However, this has not been enough for coffee companies in Ireland to meet demand, and many have resorted to buying up coffee markets in the hope of securing a higher price.
The UK’s Department for International Trade (DIT) has been encouraging coffee companies to take advantage of the “pre-Brexit” boom in the UK market, but is not yet able to act on this directly.
According to the Irish Times, the Department said that it is working on plans to support the coffee industry and help investors avoid losses as a result of Brexit.
A DIT spokesperson said that the agency has been working closely with the sector to ensure that the financial markets are fully protected for investment in the Irish market, and that the EU has provided the UK with additional support.
“The DIT has also been working with the industry to make sure that there is sufficient liquidity in the market for businesses to make long-term investments, and to ensure the trading system is robust and that there are adequate safeguards in place for investors and consumers,” the spokesperson said.
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