A popular high street restaurant chain is preparing to close several branches as it battles rising costs and tough trading conditions.
Customers at three locations could soon see their local restaurant shut for good.
Turtle Bay has proposed a Company Voluntary Arrangement (CVA) that could lead to the permanent closure of three of its 50 restaurants across England.
The branches in Solihull, Walthamstow and Middlesbrough are all set to close under the proposals.
Around 30 per cent of Turtle Bay’s remaining restaurants could also see their lease agreements renegotiated as part of the restructuring.
Interpath’s Gareth Slater and Will Wright have been appointed to oversee the CVA process.
Turtle Bay said the proposals form part of a wider plan to strengthen the business and put it on a more sustainable long-term footing.
The Caribbean restaurant chain changed ownership last year and has since invested in improving its operations.
These improvements have included changes to its food and drinks menu, stronger day-to-day operations, better recruitment and staff training, and a greater focus on customer experience.
Turtle Bay has proposed a Company Voluntary Arrangement (CVA) amid challenging times
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Despite those changes, the company said it continues to face significant economic pressures affecting the wider hospitality sector.
The company said the hospitality industry is facing a combination of rising costs and weaker consumer spending, making it increasingly difficult for businesses to operate.
Restaurants have been hit by higher food, energy, business rates, employment and recycling costs, while many customers have less money to spend.
Turtle Bay also said the UK’s hospitality sector faces one of the highest VAT rates in Europe, putting restaurants at a disadvantage compared with other industries that benefit from lower tax rates.
The company said it continues to face significant economic pressures affecting the wider hospitality sector
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GETTYAjith Jayawickrema, founder and CEO of Turtle Bay, said: “Turtle Bay is a much stronger business today than it was a year ago.
“We have fantastic teams, loyal guests and a brand that people genuinely love. However, over the last few years, the hospitality industry has experienced extraordinary economic pressures.
“Whilst we have made significant operational improvements, some historic property commitments are simply no longer sustainable in today’s market.
“The proposed CVA gives us the opportunity to address those issues responsibly, protect the vast majority of jobs, continue investing in our restaurants and create a stronger future for Turtle Bay.”
Turtle Bay is known for its Caribbean-inspired food, rum cocktails, Happy Hour and bottomless brunch in a relaxed setting
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GETTY IMAGESGareth Slater, managing director at Interpath, said: “The casual dining sector has faced a number of challenges in recent years and Turtle Bay has not been immune to these.
“The proposed CVA, along with other actions being taken by the management team, provides the opportunity to deal with legacy issues in the business and deliver a sustainable business.”
Throughout the CVA process, all Turtle Bay restaurants will maintain normal trading operations with no alterations to the customer experience.
The company expressed confidence in the brand’s long-term prospects, stating that the proposed restructuring would deliver a more robust and sustainable platform for years to come.