Turtle Bay, the Caribbean-themed restaurant chain with around 50 UK locations, has announced plans to close three outlets as part of a Company Voluntary Arrangement (CVA) to rescue the business. The restaurants in Solihull, Walthamstow, and Middlesbrough are set to shut permanently under the proposals.
Details of the Restructuring
The CVA, a legal process allowing companies to renegotiate debts while continuing to trade, will also involve lease renegotiations for 30% of the remaining portfolio. Turtle Bay stated that all restaurants will operate normally during the process, as reported by Propel.
Reasons Behind the Move
The chain cited rising operating costs, reduced consumer spending, changing footfall patterns, and legacy property commitments as key pressures. Specific cost increases include food, energy, business rates, employment, and recycling expenses, alongside ongoing consumer confidence challenges.
Company's Outlook
Founder Ajith Jayawickrema repurchased Turtle Bay from private equity firm Piper in May last year. Since then, the company has improved its food and beverage offerings, operational standards, recruitment, training, and customer experience. In a statement, Turtle Bay said: "As a result, we believe we now have a sustainable business at its core. However, like much of the UK hospitality sector, Turtle Bay continues to face significant economic headwinds."
Impact on Jobs and Future Investment
The proposed CVA aims to address historic property commitments while safeguarding most jobs and enabling further investment across the estate. This follows the closure of Turtle Bay's Swansea restaurant earlier this year after nearly a decade of operation.
