Coconut Tree seeks buyer

Sri Lankan street food outfit The Coconut Tree has been put up for sale after its company voluntary arrangement (CVA) failed. It was founded in 2016 by five Sri Lankan friends living in Cheltenham – Mithra Fernando, Rashinthe Rodrigo, Dhanushka Fernando, Praveen Thangiah and Shamil Fernando. Offers for the business whch operates across 7 sites with offers invited “on an accelerated time frame.”

The company closed in Cardiff site last year the one in Birmingham earlier this year.

Working with restructuring expert Forvis Mazars on its CVA plans, the Coconut Tree thought to be operating profitaby but legacy debt isproblematica and has become difficult to service.

The business is headquartered at a freehold premises in Cheltenham with two leasehold restaurants in Bristol and one in each of Bath, Reading, Oxford and Bournemouth.

Average covers per week are believed to be circa 3,000, with a typical £30 spend per head. For the 6 months to May 2025, sales per site were £417,000 at the Cheltenham site, £244,000 in Oxford, £175,000 in Bournemouth, £258,000 in Bath, £223,000 in Reading, £258,000 and £220,000 for its Bristol sites.

In January, the company launched a £1m crowdfund campaign, with plans to open two sites in London. The business was offering 10% of equity, with a pre-money valuation of £10m. The business forecast growing to 13 sites by the end of last year, 20 by the end of 2025 and 50 inf 2028. The company was targeting a valuation of £100m by 2028, with an aim to grow annual revenue from £6.7m to £70m. No update the crowdfunding campaign was issued, with the end date twice extended.

Last year, the business also said it was preparing a franchise model to “fast-track” its overseas expansion, focusing on Sri Lanka.