UK-based restaurant chain the Coconut Tree has reportedly failed to pay the monthly wages of more than 200 employees working at the restaurant, according to a BBC News report.

The Coconut Tree claimed it is "struggling" to pay the wages for May due to the "increased cost of goods".

The report cited an email sent by the restaurant chain to its staff stating that the company has ‘exhausted all UK borrowing options’.

The email also claimed that the company had been ‘accruing losses’ and is looking for additional funding options.

The report quoted a Coconut Tree spokesman as saying: “We apologise to staff affected by delays.

“These were caused by unforeseen costs to the business and the wages for the staff affected will be paid by 12 June.”

The BBC report also quoted an anonymous employee saying that he was "extremely stressed" and is "owed over £1,500".

He added: “I already have direct debits bouncing and my rent is due. We were not notified until the day after payday and the email was very concerning. I worry I will not be paid for some time.”

The restaurant chain currently operates a total of nine restaurants across the UK, including Bristol, Bath, Cheltenham, Reading, Bournemouth, Birmingham and Cardiff.

According to The Caterer, the Coconut Tree serves 'tapas-style' Sri Lankan street food and beverages, including coconut sambal, hoppers, chicken kottu and hot battered spicy cuttlefish.

The restaurant was founded in 2016 by seven Sri Lankan friends residing in the UK. The first Coconut Tree restaurant opened in Cheltenham.