Turtle Bay Secures Creditor Backing for CVA as Four Sites Close

Caribbean-themed restaurant and bar chain Turtle Bay has won creditor approval for a Company Voluntary Arrangement (CVA), a move that will see four of its restaurants shut permanently and lease terms revised across roughly a third of its remaining estate.

The Bristol-headquartered operator, which was set up in 2010 and employs more than 1,500 people across 48 sites, said the restructuring followed a prolonged period of “significant economic headwinds” across the sector.

Restaurants in Solihull, Walthamstow, York and Middlesbrough have now stopped trading as a direct result of the CVA, with 76 members of staff losing their jobs. Under the terms agreed, lease arrangements at a further 15 locations will be renegotiated, while the remaining sites continue to trade as normal.

The proposal was approved by 92% of voting creditors by value, clearing the threshold needed for the arrangement to proceed.

The vote comes roughly a year after Turtle Bay changed hands, a transition that brought with it plans to overhaul the food and drinks menu, tighten operational standards, and invest in staff recruitment and training. According to the company, that turnaround effort has been undermined by a mix of higher operating costs, tighter discretionary spending among consumers, shifting footfall trends and the burden of older, less favourable property agreements signed in previous years.

Founder Ajith Jayawickrema said the CVA outcome gives the business “a stable platform” to secure its long-term future, protecting the majority of jobs and sites while allowing continued investment in the restaurant estate.

He acknowledged the toll of the process on staff and thanked landlords, creditors and customers for standing by the brand through a difficult period, saying the company had reached decisions it did not take lightly but now had what he described as a sustainable core to build on.

Gareth Slater, managing director at restructuring specialist Interpath, which advised on the CVA, said the result reflected continued support for the Turtle Bay brand and credited the leadership team’s engagement with landlords and creditors for reaching a workable settlement. He noted that the deal allows the group to right-size its debts while giving it a solid footing to stabilise and move forward with the bulk of its estate intact.

The approval places Turtle Bay among a growing list of UK casual dining and hospitality operators to have turned to CVAs in recent years as rising costs and softer consumer demand continue to squeeze margins across the sector.