UK Restaurant Chain Closes 22 Branches, Cuts 244 Jobs After Administration Plunge
Leon, the UK-based restaurant chain known for its “naturally fast food,” has recently closed 22 branches and cut 244 jobs. This drastic measure follows its entry into administration in December. The move underscores the challenges faced by Leon as it navigates financial difficulties.
Details of the Closure and Job Cuts
As a result of this administration plunge, Leon has significantly reduced its workforce. The company now employs just 573 people, down from its previous count. It reported losses of £12.5 million for 2023, £8.3 million for 2024, and projected losses nearing £10 million for 2025.
Background of the Company
Leon was founded in 2004 by John Vincent, Henry Dimbleby, and chef Allegra McEvedy. Their first outlet opened on Carnaby Street in London, aiming to transform the perception of fast food with Mediterranean-inspired offerings.
- First outlet: Carnaby Street, London
- Founded in 2004
- Initial focus: Healthy, seasonal ingredients
At its peak, Leon operated 85 locations, both in the UK and internationally. However, the chain has struggled financially after being sold to EG Group, the owner of Asda, for £100 million in 2021.
Future Prospects
John Vincent, co-founder of Leon, acquired the business back from Asda in October. He highlighted that increasing taxes and a drift from core values contributed to the struggles of the chain. Vincent expressed hopes of restoring the brand to profitability and expanding job opportunities in the future.
Efforts to Restructure
Administrators at Quantuma Advisory are currently seeking a company voluntary agreement (CVA). This restructuring method would allow Leon to remain operational while addressing its debt obligations. Additionally, they are negotiating with landlords for reduced rent to facilitate recovery.
Leon has also expressed intentions to assist impacted employees. They aim to redeploy staff to other locations where possible, offer redundancy options, and provide pathways for affected workers to apply for jobs at Pret A Manger.
Conclusion
Leon’s recent challenges reflect broader trends in the fast-casual dining sector. The restaurant chain, once celebrated for its innovative approach to fast food, must now navigate a difficult economic landscape as it works toward rebuilding and redefining itself.
