Home / Business and Economy / Leon Axes 244 Jobs as 22 Restaurants Close Amid Financial Crisis
Leon Axes 244 Jobs as 22 Restaurants Close Amid Financial Crisis
15 Feb
Summary
- Leon closed 22 branches, leading to hundreds of job losses.
- The chain reported losses of £12.5 million in 2023.
- Founder John Vincent blamed unsustainable tax burdens for the crisis.
Fast food chain Leon has faced severe cutbacks, resulting in the closure of 22 branches and the elimination of 244 jobs. The company, known for its natural fast food, fell into administration recently. Administrators Quantuma Advisory reported that the chain currently employs 573 staff.
Leon recorded substantial financial losses, including £12.5 million in 2023. The company's struggles intensified after being sold to Asda's owner, EG Group, in 2021. In October of last year, co-founder John Vincent repurchased the chain from EG Group.
Mr. Vincent attributed the current financial difficulties to 'increasingly unsustainable taxes' and changing consumer habits. He expressed hope that the chain could return to profitability and expand, creating more jobs. The sale included 46 Leon restaurants and several franchise sites internationally.
Administrators are exploring options like a company voluntary agreement (CVA) to restructure the firm and are negotiating with landlords to reduce rent. These measures follow internal challenges, shifts in commuter behavior post-pandemic, and tax increases impacting the business.
