A popular restaurant chain with 50 UK venues is set to close three sites as part of a rescue plan aimed at securing its future.
Turtle Bay has confirmed it is proposing a Company Voluntary Arrangement (CVA), a restructuring process that allows businesses to renegotiate debts while continuing to trade.
Under the proposals, restaurants in Solihull, Walthamstow and Middlesbrough would close.
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A further 30% of the remaining estate would also be subject to lease renegotiations as the Caribbean-inspired chain looks to create what it describes as “a more sustainable platform for the future.”
Despite the restructuring plans, Turtle Bay said all of its restaurants will continue trading as normal throughout the CVA process, as reported by Propel.
The company said it remains confident in the long-term future of the brand and believes the proposed changes will provide a stronger foundation for the business.
Turtle Bay, which is known for its Caribbean food, cocktails and laid-back atmosphere, currently operates around 50 restaurants across the UK.
The business was bought back by founder Ajith Jayawickrema in May last year from private equity firm Piper, which had backed the company since 2013, as reported by creatorzine.com.
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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.
However, it said the wider hospitality industry continues to face significant economic pressures.
In a statement, Turtle Bay said: “As a result, we believe we now have a sustainable business at its core.
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“However, like much of the UK hospitality sector, Turtle Bay continues to face significant economic headwinds.”
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.
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.
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