Leon has unveiled plans to exit administration following its restructuring, supported by a £2.5m injection of funds from its co-founder and owner, John Vincent.
Details of a planned Company Voluntary Agreement will be published today by administrators BTG Begbies Traynor and Quantuma, leading to a creditors’ vote on 27 May. Following the vote, the company has said it will emerge as a “smaller but stronger business”.
The healthy fast food chain first appointed administrators in December, two months after Vincent purchased Leon back from Asda, to “lay out options for the future of the company”.
At the time, it was understood that the restructuring would involve the closure of several restaurants and a number of job losses.
Leon has now confirmed that 23 company-owned restaurants closed during the restructuring, leaving it with a total of 43 restaurants, 23 of which are franchised.
The team members who were not relocated to other Leon restaurants were given the opportunity to apply for jobs at Pret a Manger.
To secure the finances of the group, Vincent will invest a further £2.5m in loans into the business.
“I would like to thank everyone inside and outside Leon who has helped over the last few months as we have undergone a painful but necessary restructuring to secure the company’s future,” Vincent said.
“We have now reached the point where the company can exit administration and continue its rejuvenation as a smaller but more sustainable company devoted to serving wonderful food to its customers.
“There is a lot of affection for Leon, and I am committed to working on behalf of our guests, teams and suppliers to make the company what people want it to be.”
The restructure is one of many ways Vincent is looking to turnaround the business. Many members of the former management team have returned, including Chris Burford as CFO, Nick Scovell as operations director, and Chantal Symons and Ben Peverelli in food development.
The company is also bringing back menu items that “helped build the reputation of the brand in the first place”, such as the Fish Finger Wrap and Grilled Chicken Rice Boxes after Vincent vowed to take the business back to its roots.
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