The Coconut Tree group of Sri Lankan restaurants faces collapse after failing to meet the terms of a company voluntary arragement (CVA). The West Country-based group has eight branches; a ninth, in Cardiff, closed in March.
The group was founded by five Sri Lankan friends who took over an old Cheltenham pub in 2016, winning a reputation for tasty, good-value small plates served amid a relaxed island vibe. Strong growth saw openings in Bristol, Bath, Oxford, Bournemouth, Reading and Birmingham, and early last year the group was discussing expansive plans for up to 50 branches.
However, in June 2023 the company reportedly had difficulty paying employees, and last summer it entered a CVA, with documents at Companies House showing it owed £1.6 in unpaid VAT, PAYE and national insurance. The company is expected to be wound up at a hearing later this month.
Meanwhile, the eight branches appear to be operating business as usual.
