The fast food chain LEON has taken a swipe at “unsustainable taxes” while moving to secure its future through the appointment of an administrator, leaving hundreds of jobs at risk.
The loss-making company, bought back from Asda by its co-founder John Vincent only last month, said it had begun a process that aimed to close unprofitable sites.
It was unclear at this stage how many of its 71 restaurants – 44 of them directly owned – and approximately 1,100 staff would be affected by the plans for a so-called Company Voluntary Arrangement (CVA).
“The restructuring will involve the closure of several of LEON’s restaurants and a number of job losses”, a statement said.
“The company has created a programme to support anyone made redundant.”
It added: “LEON and Quantuma intend to spend the next few weeks discussing the plans with its landlords and laying out options for the future of the Company.
“LEON then plans to emerge from administration as a leaner business that can return to its founding values and principles more easily.
“In the meantime, all the group’s restaurants remain open, serving customers as usual. The LEON grocery business will not be affected in any way by the CVA.”
Mr Vincent said. “If you look at the performance of LEON’s peers, you will see that everyone is facing challenges – companies are reporting significant losses due to working patterns and increasingly unsustainable taxes.”
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