The current period of difficult trading with prices continuing to rise at an unprecedented rate is taking its toll on local businesses. The hospitality industry is finding things particularly difficult with less people going out and difficulty in getting staff, two of the most pressing issues.
The Velveteen Rabbit Café in John Mitchel Place announced on Saturday evening that they were closing. Well known for it's beautiful takeaway afternoon teas and their home made tarts, sponges and traybakes along with their unique 'Christmas fries', rising costs were cited as a main contributer to the closure.
A statement on their Facebook page said "It is with regret that we announce that today was the last day of trading of The Velveteen Rabbit Cafe.
"To be honest the shocking rises in cost have forced our hand and although we are heartbroken we have done all we could. Every single one of our customers have been amazing and we appreciate you more than you’ll know.

The statement ended "Thanks so much to the people of Newry for everything. We will miss the craic more then anything."
If you have vouchers/bookings send them a message via their Facebook page.
The Velveteen Rabbit closure follows a temporary closure of Craft Café Bistro in Margaret Street in the City a week ago. Staffing and costs were again cited.
A spokesperson for Craft said "This has not been an easy decision to make or one we have taken lightly. The constant rising overheads on a daily basis is hard to sustain. Recruiting the level of staff required to run the restaurant and kitchen is virtually impossible.
"Hospitality, along with so many other industries, is on its knees with many struggling to scrape by. This is not the end, just a short sabbatical until things settle down!
"We would like to thank all our customers for there support over the years and our loyal staff who work tirelessly throughout what have been trying times."


