Award-winning restaurant chain that serves ‘the best' bottomless brunch on brink of collapse with several sites at risk
CLOSING TIME Award-winning restaurant chain that serves 'the best' bottomless brunch on brink of collapse with several sites at risk
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AN award-winning restaurant chain is on the brink of collapse with several sites at risk of closure.
The Coconut Tree is set to be wound up after defaulting on its Company Voluntary Agreement (CVA), a way of restructuring that means a business can continue trading by negotiating its debts.
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The coconut nut tree is on the brink of collapse
Credit: The coconut tree
Records on Companies House show the firm owes HMRC £1.6million, which includes VAT, PAYE and National Insurance Contributions.
The Sri Lankan restaurant group entered into the agreement last July, according to a report in Restaurant Online, with the group required to initially repay £27,000 a month for the first three months.
This would then increase to £45,000 per month for 12 months, and then £50,000 for 10 months.
The figure would then rise to £55,000 until April 2028.
Over the course of the CVA the group paid back a total of £376,000.
The beloved group made a number of attempts to keep the business afloat including a payment holiday which was granted in March.
One of its branches in Cheltenham was reportedly put up for sale with the intention of it being leased back to business to release equity, but a buyer was never found.
Filings on Companies House show a winding up agreement is scheduled for July 16.
This is a court proceeding where a creditor petitions the court to liquidate a company that is unable to pay its debts.
It means a company can be forced into compulsory liquidation.
Beloved steakhouse chain to shut ALL its restaurants after collapsing into administration with no explanation
The Sun has contacted The Coconut Tree for comment.
The news puts question marks over the future of the chain's seven sites across the UK.
That includes sites in Bristol, Reading and Oxford.
Reports of its struggles will come as a blow to locals who have praised the chains bottomless brunch offering.
Some happy customers have claimed it is "the best" on the market.
While another punter said: "Outstanding bottomless brunch.
FULL LIST OF THE COCONUT TREE LOCATIONS Reading
Oxford
Cheltenham
Bristol, Clifton Triangle
Bristol, Glos Road
Bournemouth
Bath
"Unbelievably delicious food and the cocktails were so lovely. Highlights include goat curry, fish curry, chickpeas and prawns."
A third happy customer said it was a "life changing experience".
TROUBLE IN THE RESTAURANT INDUSTRY
Chains have been struggling recently as the cost of living has led to fewer people spending on eating out.
Businesses have also been struggling to bounce back after the pandemic.
As a result, a number of chains have been forced to close down or reduce their estate.
Officina 00, a popular pasta join, closed three locations across Covent Garden, Fitzrovia and Old Street.
The Cosy Club at Ipswich's Buttermarket Shopping Centre has announced it made the "very difficult decision" to close doors on May 31.
The Browns Bar and Brasserie on Duke Street also closed its Brighton branch in May due to an issue with the venues lease expiring which could not be resolved.
Turtle Bay also shut its Blackburn site, which first opened in 2017.
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