The boss of Leon has pledged to get the restaurant business "back to its best" after exiting administration. The fast-food chain, which collapsed last year, has finished a restructuring process aimed at turning the struggling firm around.
Restructuring details
The company has emerged with 43 restaurants, some 530 jobs secured and the support of its creditors, including HMRC, according to business advisory firm Quantuma. The news comes just months after Leon was bought back by co-founder John Vincent from Asda in a deal reported to be between £30m and £50m, well below the £100m that billionaire brothers Mohsin and Zuber Issa paid in 2021.
Founder's statement
Mr Vincent said: "I am so grateful to all our landlords and other creditors who have shown us such strong support in recent months. With their backing we now have the opportunity, as well as the responsibility, to get Leon back to its best and to help people eat and live well every day." He also thanked colleagues for stabilising the business and restoring some of its old verve, as well as customers for their patience and support.
Impact on jobs and sites
The restructuring has removed a number of underperforming sites, while saved jobs are across the company's head office, central support and trading site teams. According to Quantuma, staff affected by closures were assisted by a programme with Pret A Manger where they could apply for jobs via a dedicated channel. The Leon Grocery business was not affected by the administration and restructuring.
Quantuma's perspective
Brian Burke, joint nominee and managing director at Quantuma, said: "I am delighted to have achieved this positive outcome for Leon which protects over 530 jobs and ensures the continuity of a highly valued restaurant chain. While the retail and hospitality sector continues to suffer highly challenging trading conditions given the impacts of increased costs, tax burdens, business rates and national insurance, I am very pleased that the Quantuma team has secured an outcome that will position the business to return to its positive trajectory."
History of Leon
Leon was founded in 2004 with its first outlet located in London's Carnaby Street. The chain later expanded and at one point had 75 sites with a mix of owned and franchised outlets.
