Dana Cafe, Crookes: Hundreds rally to save Sheffield cafe from closure as owner battles cash flow troubles

A Sheffield cafe is currently on the brink of closure due to its reserves being eaten up by skyrocketing bills.

Amalasiddhi Silva, owner of Dana Cafe, in Crookes, has set up a crowdfunder to raise £9,000 in a final attempt to save the business. While it has received support from more than 160 people, with less than one week to go, it still has over £4,000 left to reach its target.

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Dana opened in Crookes in 2017, and will be celebrating its seventh anniversary at the end of this month. 

Despite winning the hearts of much of the community, its popularity has ultimately led the cafe to its downfall after it had to start paying 20 per cent VAT on all its takings from June 2022.

Added with the continued pressures of rising costs from suppliers and bills, Amalasiddhi said the business has now used up all its reserves. 

He said: “As a business, we are in a position where we have a cash flow problem. Because we are trading so well we have had to start paying 20 per cent of VAT on our takings, and now we are no longer able to afford all of the staff we used to have. 

“Coupled with the rising costs of living, it means we have basically used all of our reserves. I should have made changes maybe three months ago and let go of staff, but I didn’t want to - I thought surely it will work out. 

“I’m sad really, it’s a lovely community space. We have held fundraising events for lots of different causes, there’s just so much love in this cafe.”

Amalasiddhi, who lives in Broomhill, has had to let go of four members of staff just so he could put money aside to pay the VAT. 

He is keen to raise awareness of the issues small businesses face when paying VAT, and is calling on the government to make a change, and ‘support’ businesses.

The father of two added: “We are so happy and proud of what we have created, what we do and how we do it. We are now in a position of having to ask for help from our community and hope that this time we are the recipients of the generosity of our lovely community.”

If the crowdfunder does not meet its £9,000 target, it is possible that the business will need to reduce its opening hours, or close altogether. 

The team is planning a party to mark its seventh anniversary at the end of the month, to find out more please visit their Facebook page.

To donate to the Crowdfunder, please click here.