The Coconut Tree, a beloved UK restaurant chain, is on the brink of closing its high street locations, putting numerous jobs at risk. The popular eatery entered administration last week after failing to meet the terms of a Company Voluntary Agreement (CVA), according to reports from The Sun.
This sudden development has surprised many fans of the restaurant, which could now be forced to shut several branches across the UK due to an unpaid tax bill exceeding £1.6 million owed to HM Revenue and Customs (HMRC). Official documents reveal the business owes more than £1.36 million in VAT and over £230,000 in PAYE national insurance contributions.
The Coconut Tree currently operates nine locations nationwide, including in Birmingham, Bristol, Bath, Oxford, Reading, and Cheltenham. The chain gained widespread recognition when co-founders Rashintha Rodrigo and Shamil Fernando appeared on Channel 4’s “Come Dine With Me – The Professionals” in 2022.
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Renowned food critic Jay Rayner recently praised the restaurant, highlighting its vibrant and energetic cuisine served with a distinctive flair. He described it as “totally laid-back and completely on point,” celebrating the authentic Sri Lankan story it tells through its dishes, all at an affordable price.
The potential closures could have a significant impact on employees and the local communities where The Coconut Tree operates, as uncertainty looms over the chain’s future.