Bewley's Grafton Street Café in Dublin is set to close permanently in the coming weeks.

The proposed closure would lead to the loss of all 110 jobs.

At a briefing with staff this evening, which was followed by an email, management said it would enter into consultation with employees.

In the email, management said "it was with deep regret and great sadness that it is likely to be necessary to permanently close over the coming weeks".

It said the "proposed closure" would result in the loss of all jobs.

"We would like to sincerely thank all of the staff who work in the business for their loyalty and dedication which has made Bewley's Café on Grafton Street a landmark, iconic and memorable place to visit.

"We would also like to thank our loyal customers over the decades."

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The café closed temporarily in mid-March due to the Covid-19 restrictions.

The operator, Bewley's Café Grafton Street Ltd, is a subsidiary of Bewley's Ltd, which is owned by artist Paddy Campbell and his family.

His son Cól Campbell, the managing director of the café, told RTÉ News that the outlet had been facing into an uncertain trading period.

Social distancing measures once it reopened later in the summer would have forced the cafe to reduce its capacity, Mr Campbell said.

As a result, it was facing a significant loss of revenue compared to the level it had previously been trading at, he claimed.

The café's premises is leased and the company was paying almost €1.5m a year in rent to Ronan Group Real Estate, the firm owned by developer Johnny Ronan.

In 2012 an independent arbitrator had recommended that the rent be cut to €728,000.

However, that proposal was not accepted by the landlord, which later won a Supreme Court action aimed at overturning a High Court ruling that found the rent should be halved.

The historic café has had mixed fortunes in recent times, closing and reopening on a number of occasions in the past two decades.

In 2017 it relaunched after a three-year multi-million euro refurbishment project.

Additional reporting Will Goodbody