Turtle Bay to Close Three Sites as Part of CVA

Turtle Bay, the Caribbean-themed restaurant brand, is set to close three sits as part of a company voluntary arrangement (CVA), which was presented last week, and the company will also renegotiate leases across 30% of its estate.

The casual dining group, founded by Ajith Jayawickrema, is pursuing the CVA as part of its plan to put the business on a sustainable footing in the face of “significant economic headwinds”.

While the CVA is being pursued, Turtle Bay said its restaurants will continue trading as normal throughout the process.

The company said it remains confident in the long-term future of the brand and believes the proposed restructuring will provide a “stronger and more sustainable foundation in the years ahead”.
A representative for Turtle Bay said: “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 combination of rising operating costs, reduced discretionary consumer spending, changing footfall patterns and legacy property commitments has created substantial pressure across the industry. Hospitality businesses have faced increases in food costs, energy costs, business rates and employment costs and recycling costs, whilst consumer confidence remains under pressure.

“In addition, the UK hospitality sector continues to operate under one of the highest VAT regimes in Europe, while competing for consumer spending against sectors that are treated differently for tax purposes. The cumulative effect of these pressures has created a challenging trading environment for many otherwise viable hospitality businesses.”

Turtle Bay posted a pre-tax loss of £10.1m in the year to 30 March 2025 compared to a £1.8m profit in the previous 12 months, which it said was impacted in part by the government’s “unhelpful raid on employers’ national insurance”.

The three sites earmarked for closure are Solihull, Walthamstow and Middlesbrough.