Four Turtle Bay sites close as creditors approve CVA

Creditors have approved a Company Voluntary Arrangement (CVA) proposal by Caribbean restaurant and bar group Turtle Bay, which will see four restaurants close and leases across 30% of the estate renegotiated.

Founded in 2010, the Bristol-based restaurant operator employs more than 1,500 staff, trading from 48 sites.

Turtle Bay changed ownership last year and an improvement plan was put in place to enhance the food and drink offer, strengthen operational standards and improve guest experience, recruitment and training.

Despite this, the owners said the combination of rising operating costs, reduced discretionary consumer spending, changing footfall patterns and legacy property commitments had created substantial pressure.

The casual dining group, founded by Ajith Jayawickrema, told creditors the CVA would put the business on a sustainable footing in the face of “significant economic headwinds”.

It was approved by 92% of the value of voting creditors. As a result, terms relating to 15 sites will be altered and a further four in Solihull, Walthamstow, York and Middlesbrough have ceased trading with 76 employees made redundant.

Jayawickrema said: “Securing approval for our CVA proposals provides us with a stable platform for the long-term future of Turtle Bay as we protect the majority of jobs and sites, address challenges in the business, and continue investing in our restaurants.

“I’d like to thank our landlords and creditors for their support throughout this process, our dedicated teams who have and continue to bring warmth, energy and Caribbean soul to our service and, of course, our loyal customers. While we have had to make difficult decisions along the way, we believe that we now have a sustainable business at its core and can look forward with confidence.”

Gareth Slater managing director of Interpath, which oversaw the CVA, added: “The hospitality industry continues to face significant challenges and so this agreement reflects the support for Turtle Bay’s offering and the impact of the leadership team’s engagement with stakeholders to find a sustainable solution to its challenges.

“The CVA proposals have struck a fair comprise for creditors, helping the business right-size its debt obligations, while also providing a firm foundation for Turtle Bay to stabilise and move forward with the vast majority of its sites.”