The Caribbean restaurant group is working with Gareth Slater and Will Wright from Interpath on the CVA, which is designed to strengthen and sustain its business in the long term.
The restaurants it has earmarked for closure are located in Solihull, Walthamstow, and Middlesbrough.
Turtle Bay, which operates around 50 sites, says it will look to renegotiate the terms of the leases of around another 30% of its estate as part of the CVA. It will continue trading as normal throughout the process.
The group says it has made significant improvements across the business over the past year, after private equity firm Piper sold its stake back to founder Ajith Jayawickrema in May 2025. Improvements have been made in areas including the food and drink offer, operations, recruitment and training, and guest experience, it says.
However, the group says its continue to face challenges from rising operating and employment costs, business rates, reduced discretionary consumer spending, changing footfall patterns, and legacy property commitments.
In January this year it reported a sales drop of 10% and a drop in profits in its latest financial results. Sales fell to £84.3m, down from £93.7m the previous year, in its full accounts for the 52 weeks to 30 March 2025, and loss before tax was £10.2m, compared with a profit of £1.9m in 2024.
“Turtle Bay is a much stronger business today than it was a year ago. We have fantastic teams, loyal guests and a brand that people genuinely love,” says CEO Jayawickrema.
“However, over the last few years, the hospitality industry has experienced extraordinary economic pressures. Whilst we have made significant operational improvements, some historic property commitments are simply no longer sustainable in today’s market.
“The proposed CVA gives us the opportunity to address those issues responsibly, protect the vast majority of jobs, continue investing in our restaurants and create a stronger future for Turtle Bay.
We remain fully committed to delivering the warmth, energy and Caribbean soul that our guests know and love.”
The company says it remains confident in the long-term future of the brand and believes the proposed restructuring will provide a stronger and more sustainable foundation for the long term.