The Coconut Tree restaurant group faces continued financial strain and, with the termination of its Company Voluntary Arrangement (CVA), it seems the clock is ticking on its future.
Reportedly entering a CVA in 2024, the Group's Companies House documents now reveal that the business has defaulted the payment plan – and owes over £1.36 million in VAT and over £230,000 in PAYE and national insurance contributions to HMRC.
Despite this £1.6 million tax bill, the organisation is staying staunch in its approach to keep operations going and insists it isn't closing.
Helen Coen, head of marketing at The Coconut Tree, said: 'The CVA hasn't worked as we would have hoped, which given the economic climate and the way that restaurants are struggling, isn't really a great surprise.
'All options are being explored to ensure the continuation of the business and we're doing everything possible to stay open.
'The Cheltenham restaurant has always been and continues to be popular. We hope that that there's a way that this can continue. There's a lot of staff that are certainly hoping for this too.
'We unfortunately can't say anymore than that at the moment.'
With restaurants in Bristol, Bath, Oxford, Reading and Cheltenham, to name a few, The Coconut Tree is a staple on the south west food scene and famous for its vibrant, South Asian dining experience coupled with unique cocktails and a varied menu – with top critic Jay Rayner commenting on the food's 'raucous rough-edged enthusiasm.'
Though the company's people cling to hopes of resurgence, they await a hearing scheduled for the end of July 2025 that will decide if the business will be 'wound up'.
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