A major UK high street food chain is confronting the potential closure of all its restaurants, placing numerous jobs in jeopardy across the country.
Administration and Massive Tax Debt
The Coconut Tree entered administration last week after it failed to meet payments on a Company Voluntary Agreement (CVA). This shocking development puts the future of its nine UK branches in doubt.
The chain's collapse stems from a significant unpaid tax bill owed to HM Revenue and Customs. Official documents reveal the business owes more than £1.36 million in VAT and over £230,000 in PAYE national insurance contributions, bringing the total debt to approximately £1.6 million.
Nationwide Reach and Critical Acclaim
The popular Sri Lankan-inspired restaurant has established a notable presence across England. Its locations include sites in Birmingham, Bristol, Bath, Oxford, Reading, and Cheltenham.
The chain had garnered significant positive attention. Its co-founders, Rashintha Rodrigo and Shamil Fernando, appeared on Channel 4's Come Dine With Me – The Professionals in 2022. Furthermore, renowned food critic Jay Rayner recently praised the restaurant, highlighting its "raucous rough-edged enthusiasm" and describing it as managing "that rare trick of being totally laid-back and completely on point at the same time."
Uncertain Future for Staff and Fans
The move into administration and the looming threat of closure comes as a severe blow to the chain's employees and its dedicated customer base. The situation underscores the intense financial pressures facing the UK hospitality sector, where even well-reviewed and seemingly successful businesses can encounter severe difficulties.
With the company now under the control of administrators, the focus will be on finding a solution, but the immediate future for its restaurants and staff remains highly uncertain.
