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. Leon’s immediate priority will be to reduce the number of loss-making sites as it attempts to stabilise the business and return it to profitability.
Vincent reacquired 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. The company added that while Vincent believes Leon drifted from its original values under previous ownership, he recognises the challenges faced by Asda and EG as operators.
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