TT merchandise contract terminated with immediate effect

In an extended statement, Mr Johnston added: "The department has been required to take this action as Cube International Ltd have failed to fulfil their required financial obligations attached to this contract within the stipulated period and are in breach of their contract terms.

"The decision to terminate has not been taken lightly and is the result of circumstances that have rapidly become untenable, however the provision and supply of official merchandise plays an essential role within the TT’s overarching strategy and is also a key source of income for many retailers as well as the department and it is our responsibility to act to protect the interests of all involved parties.

"It is acknowledged that the termination of this contract will be unsettling for many of the Island’s businesses and retailers and whilst the department works to facilitate the essential supply and delivery ahead of the 2024 TT Races, the priority of the department is to work closely with those that will have been impacted by the termination of contract."

The department says it's been in contact with all wholesale retailers and suppliers that have worked with the company prior to the contract being terminated.

A tender process will be run to appoint a new partner – government says this will happen ahead of the 2024 event.