Leon Enters CVA Process as Co-Founder Returns to Rescue Chain
Fast-casual operator Leon is pursuing a Company Voluntary Arrangement that will lead to restaurant closures and redundancies as co-founder John Vincent attempts to return the business to profitability.
The healthy fast-food chain, which operates 71 sites, has appointed Quantuma as administrator while it negotiates with property owners over the coming weeks. All locations continue trading during the restructuring process, and the company’s retail grocery division remains unaffected.
Vincent reacquired the business last month after originally selling it to EG Group in 2021 for £100 million. The brand subsequently transferred to Asda ownership through a larger transaction valued at £2 billion.
Following his return, Vincent conducted a business review that identified multiple unprofitable restaurants requiring closure. The company has developed support measures for affected employees, including redeployment opportunities at remaining Leon sites and redundancy compensation where necessary.
In an unusual move within the sector, Leon has established a partnership with Pret A Manger, creating a dedicated recruitment pathway for displaced staff to apply for positions with the competing chain.
Industry Pressures Mount
Vincent highlighted broader sector difficulties, noting that shifting work habits and rising tax obligations have intensified operational pressures across the hospitality industry.
“Comparable businesses throughout the sector are experiencing similar difficulties,” Vincent explained, pointing to widespread losses linked to evolving consumer patterns and taxation levels he described as increasingly difficult to sustain.
The entrepreneur has advocated for government intervention to address what he characterises as an excessive tax burden on hospitality operators. He stated that approximately 36 pence of every customer pound currently goes toward taxation, whilst company margins hover around just 2 pence.
Strategic Reset Planned
Vincent acknowledged the brand had moved away from its founding principles during the period under EG Group and Asda ownership, though he expressed understanding of the operational challenges those companies faced.
He suggested Asda viewed Leon as peripheral to its core strategy and faced more pressing priorities during its ownership tenure.
The restructuring strategy focuses on exiting the most financially challenged locations, with Leon working to identify replacement tenants for some properties whilst returning others to landlords for re-letting.
Quantuma representatives noted they have received encouraging responses from both suppliers and property owners, describing Leon as a valued participant in the food retail sector.
Vincent indicated the CVA process should conclude early in 2026, after which he intends to rebuild the business around its original values with the goal of returning to growth and job creation.
Back to Basics
Leon was established in 2004 by Vincent alongside nutrition campaigner Henry Dimbleby and chef Allegra McEvedy. Vincent received an MBE in 2015 for contributions to school nutrition programmes.
During its time under corporate ownership, the brand attracted criticism for menu changes that introduced higher-calorie options, representing a departure from its health-focused heritage.
Vincent has already announced plans to revamp the menu offering, discontinue the coffee subscription programme at year-end, and reinstate the company’s distinctive staff training approach inspired by martial arts principles.
The restructuring represents the latest in a series of CVAs affecting the UK hospitality sector as operators grapple with post-pandemic trading patterns, cost inflation, and regulatory changes including increases to National Insurance contributions.