Turtle Bay, the Caribbean-inspired restaurant chain with approximately 50 UK venues, has announced plans to close three sites as part of a Company Voluntary Arrangement (CVA) aimed at restructuring its debts and securing long-term viability. The proposed closures affect restaurants in Solihull, Walthamstow, and Middlesbrough.
CVA Details and Lease Renegotiations
Under the CVA proposal, a further 30% of Turtle Bay's remaining estate will also be subject to lease renegotiations with landlords. The company described the move as creating "a more sustainable platform for the future." Despite the restructuring, all restaurants will continue trading as normal during the CVA process, according to the company.
Turtle Bay was bought back by founder Ajith Jayawickrema in May last year from private equity firm Piper, which had backed the chain since 2013. Since the change in ownership, the company said it has improved its food and drinks offer, strengthened operational standards, invested in recruitment and training, and focused on enhancing the customer experience.
Economic Pressures on Hospitality
The wider hospitality industry continues to face significant economic headwinds, Turtle Bay said in a statement. The company pointed to rising operating costs, reduced consumer spending, changing footfall patterns, and legacy property commitments as factors creating pressure across the sector. It also highlighted increases in food, energy, business rates, employment, and recycling costs, alongside continued pressure on consumer confidence.
"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," the company stated.
Job Protection and Future Investment
The proposed CVA is intended to help address historic property commitments while protecting the majority of jobs and allowing further investment across the estate. The restructuring follows the closure of Turtle Bay's Swansea restaurant earlier this year after almost a decade of trading.
A CVA is a legally binding agreement that allows a company to reach an arrangement with creditors to repay debts over time while continuing to operate. If approved by creditors, the proposals would allow Turtle Bay to continue serving customers while reshaping its property portfolio.
