Leon to close stores leaving jobs at risk | UK | News

Popular restaurant chain Leon said it would close a number of restaurants after appointing administrators to lead a major restructuring. The fast food chain has announced that its boss will be sacked after criticizing the hospitality industry’s “unsustainable” tax burden.

The company has reportedly not yet decided exactly how many restaurants will need to close or how many workers will be affected. The group hired consultants from Quantuma after applying for an administration order.

It said it would then formulate proposals for the company’s voluntary arrangement (CVA) restructuring plan to overhaul its operations to help secure the long-term future of the brand.

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 hinted at the possibility that the less profitable Leon plants might have to close.

Sales at Leon sites fell from £64.9 million in 2023 to £62.5 million in 2024; This equates to a pre-tax loss of over £8 million, as revealed in September.

There are 44 company-owned restaurants and 22 franchise restaurants in the chain, where 1,120 personnel work.

All the group’s restaurants will remain open as usual while the restructuring plan continues.

The company said it has created a program to support anyone laid off. Mr Vincent said: “Initially, we will try to find staff roles at other Leon restaurants. Where this is not possible – for example, if there is no Leon restaurant within commuting distance – people will be given redundancy pay.”

The company also created a program that allowed laid-off employees to apply for jobs at another restaurant chain, Pret A Manger, through a special channel.

Moreover, Leon’s grocery business will not be affected by the CVA in any way.