The fast-food restaurant group collapsed last year
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, reports BritPanorama.
The company has emerged with 43 restaurants, approximately 530 jobs secured, and the backing of its creditors, including HMRC, according to business advisory firm Quantuma.
This development comes just months after Leon was reacquired by co-founder John Vincent from Asda in a deal estimated between £30 million and £50 million, significantly lower than the £100 million billionaire brothers Mohsin and Zuber Issa paid in 2021.
Mr. Vincent expressed gratitude to landlords and creditors for their strong support during recent months, stating, “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 further acknowledged the hard work of colleagues in stabilising the business and restoring its former vibrancy. Vincent also thanked loyal customers for their patience during the firm’s turbulent period.
The restructuring eliminated several underperforming locations, and the saved jobs span the company’s head office, central support, and trading teams. Notably, affected staff were assisted through a programme with Pret A Manger, allowing them to apply for jobs via a dedicated channel. Leon’s grocery business, however, remained unaffected by the administration and restructuring.
Brian Burke, joint nominee and managing director at Quantuma, commented on the successful outcome, highlighting the protection of over 530 jobs and ensuring the restaurant chain’s continuity.
He noted, “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.”
Leon, founded in 2004 with its first outlet in London’s Carnaby Street, had expanded to a peak of 75 sites, combining both owned and franchised outlets.
In a landscape where restaurants face ongoing economic pressures, Leon’s restructuring could signal a pivotal moment for its recovery. The strategy to focus on supported areas of the business may not only revive its fortunes but also reflect broader trends within the UK’s hospitality sector, which continues to grapple with increased operational costs.
