Popular restaurant chain Leon has said it will shut a number of restaurants after appointing administrators to lead a major restructuring. The fast food chain said it will cut jobs as a result, as its boss criticised the hospitality industry’s “unsustainable” tax burden.
The company has not yet decided exactly how many restaurants will need to close or how many workers will be affected, it has been reported. The group has hired advisers from Quantuma after applying for an administration order.
It said it will then form proposals for a company voluntary arrangement (CVA) restructuring plan in order to overhaul its operations to help secure the brand’s long-term future.
Co-founder John Vincent bought the business back from Asda in October, four years after it was taken over by the billionaire Issa brothers.
Leon was founded in 2004 by Mr Vincent, Henry Dimbleby and Allegra McEvedy.
Earlier this month, Mr Vincent had hinted at the possibility the more unprofitable Leon sites might have to close.
Sales across Leon sites fell from £64.9million in 2023 to £62.5million in 2024, equating to a pre-tax loss of over £8million, it emerged in September.
The chain, which employs 1,120 staff, runs 44 company-owned restaurants and has 22 franchised restaurants.
All the group’s restaurants are to remain open as usual while the restructuring plan is in place.
The company said it has created a programme to support anyone made redundant. Mr Vincent said: “In the first instance, we will look to find people roles in other Leon restaurants. Where that is not possible – for example, if there is no Leon restaurant within commuting distance – people will receive redundancy payments. »
The company has also established a programme to allow employees made redundant to apply for jobs at another restaurant chain, Pret A Manger, via a dedicated channel.
Moreover, the Leon grocery business will not be affected in any way by the CVA.
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