Leon to close sites and cut jobs as fast-food chain enters administration

"Fast-food chain Leon is set to close a number of restaurants and cut jobs after entering administration, just weeks after being bought back by its co-founder John Vincent in a deal reported to be worth between £30 million and £50 million. The business has applied for an administration order to enable the formulation of a Company Voluntary Arrangement (CVA), which it said is intended to accelerate a wider restructuring of the group."

"Vincent r eacquired Leon last month from Asda, which had bought the chain in 2021 as part of the Issa brothers' EG Group empire. That acquisition valued Leon at about £100 million, significantly higher than the price paid in the recent buyback. In a statement, Leon said the business has been hit hard by changing work patterns since the pandemic, alongside rising taxes and cost inflation, pressures that have affected much of the hospitality sector."

Leon has entered administration and applied for an administration order to enable a Company Voluntary Arrangement (CVA) aimed at accelerating a wider restructuring of the group. The immediate priority is to reduce the number of loss-making sites, close restaurants and cut jobs to stabilise the business and return it to profitability. Co-founder John Vincent reacquired the chain weeks earlier for a reported £30–£50 million after Asda valued Leon at about £100 million in 2021. The business has suffered from depressed footfall, hybrid working, rising taxes and cost inflation. Leon will negotiate with landlords with support from Quantuma and aims to emerge smaller and leaner while keeping restaurants trading and protecting its grocery arm.

Read at Business Matters