Fast meals chain Leon plans to shut eating places and reduce jobs
Fast food chain Leon has said it plans to close some of its restaurants and cut jobs after appointing administrators.
The company, famous for its halloumi burgers and waffle fries, currently has more than 70 branches across the UK.
It is currently unclear how many restaurants will shut down and which ones will be affected. The number of job losses is also yet to be announced.
Last month, Leon was sold back to one of its co-founders John Vincent at a steep discount by Asda.
Although the terms of the deal were not disclosed by the two firms, The Times reported that Vincent paid the supermarket between £30million and £50million.
This was substantially less than the £100million that the billionaire Issa brothers, Mohsin and Zuber, paid to buy it in 2021.
The sale included 46 Leon restaurants and 20 UK franchises, along with three franchise sites in the Netherlands and one in Italy.
Leon, which employs 1,120 staff, has grappled with falling sales recently and complained of a ‘challenging’ economy in its latest accounts.
Fast food chain Leon has said it plans to close some of its restaurants and cut jobs after appointing administrators (file photo)
Sales tumbled 3.7 per cent to £62.5million while it narrowed losses from £19.6million to £8.4million, with the firm noting high electricity costs weighing it down.
Vincent said at the time: ‘My time away from Leon has given me new perspectives – and I’m excited by what we can achieve for people this time round.
‘There will likely be some big decisions ahead, but first we need to take a good look under the bonnet.’
One of its other co-founders, Henry Dimbleby, had criticised Asda’s stewardship of the brand.
In October, he accused the business of straying from its ethos of healthy and convenient food.
He told The Telegraph: ‘What they’ve gone to here is they’ve realised chips sell, air fryers sell – that’s the cheapest way to make money.
‘But in the long-term, that’s going to destroy the brand.’
Leon started selling salads in boxes but has since expanded its menu to include products such as chicken nuggets and cookies.
This is a breaking news story – more to follow
