Exclusive – Leon plans CVA to help accelerate restructuring of the business: Leon, the naturally fast-food brand that was bought back by its co-founder and former chief executive John Vincent in October, is planning to undergo a company voluntary arrangement (CVA) to help accelerate the restructuring of the business and reduce its number of loss-making sites, Propel has learned. The 71-strong company has appointed Quantuma as administrators for the next stage in its restructuring programme. It has applied for an administration order for the purpose of formulating proposals for the CVA. After an initial review of the business, Vincent and his team have concluded that the immediate priority is to reduce the number of loss-making restaurants. The company said that in addition to internal challenges, changing work patterns, brought on by the covid-19 pandemic, and tax increases have combined to place further strain on the business and the wider hospitality industry in recent years. Although he believes that the company drifted from its values under the ownership of EG Group and Asda, Vincent has been sympathetic to the challenges they had as owners. “In the last two years, Asda had bigger fish to fry, and Leon was always a business they didn’t feel fitted their strategy”, 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.” The company, with Quantuma, intends to spend the next few weeks discussing the plans with its landlords and laying out options for its future. It 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 will remain open serving customers as usual. The Leon grocery business will not be affected in any way by the CVA. The restructuring will involve the closure of several of Leon’s restaurants and a number of job losses. The company said it has created a programme to support anyone made redundant. Vincent said: “In the first instance, we will look to find people roles in other Leon restaurants. Where that is not possible – for example, if there is no Leon restaurant within commuting distance – people will receive redundancy payments. In addition, we have established a programme with Pret A Manger where affected Leon employees can apply for jobs via a dedicated channel. I would like to thank Pret chief executive Pano Christou for supporting us and our team at this important time.” While acknowledging that Leon needs to take responsibility for its own operations, Vincent is also calling for a review of what he sees as an unsustainable tax burden on the sector. He said: “Today, for every pound we receive from the customer, around 36p goes to the government in tax, and about 2p ends up in the hands of the company. It’s why most players are reporting big losses. The immediate priority is to close the most unprofitable restaurants. In many cases, we have found other brands to replace us, and in others, we will be asking the landlords to take the leases back and find better suited operators themselves. We will rebuild Leon on its core values, and I hope to be providing jobs to many more people once we have returned to profitability and can continue to grow again.” Under the current plan, Leon will exit administration following the proposed CVA early next year. In September, Leon reported pre-tax losses narrowed to £8,484,832 in the year to 31 December 2024 (2023: £19,587,309), with turnover of £62,451,975 (2023: £64,906,310). Adjusted Ebitda stood at negative £600,000 against negative Ebitda of £7.8m the previous year. Leon features in the Premium Club Turnover & Profits Blue Book, the latest edition of which will be sent to Premium Club subscribers on Friday (12 December), at noon. The database will feature 11 new companies and 104 updated accounts for a total of 1,194 companies. Leon’s turnover of £62,451,975 for the year ending 31 December 2024 is the 209th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription. 

Propel’s sector-leading guide to the UK’s 500 largest hospitality companies to be made free to Premium subscribers on day of publication: Propel’s sector-leading guide to the UK’s 500 largest hospitality companies is making its return – and will now be available to Premium Club subscribers on the day of publication. The Propel 500 – 2026 report will analyse the companies leading the charge in hospitality, reporting on turnover, number of sites and key staff. The 45,000-word report will feature exclusive analysis to provide a full understanding of the market’s dynamics, as the top companies in the sector shift position after a challenging year. Mark Wingett will review the mergers and acquisitions changing the shape of the Top 500 as size increasingly matters. Katherine Doggrell will examine the key developments in UK hotels and look into one of the sector’s brightest lights, experiential leisure, while Tim Street dissects the UK’s rapidly developing franchise market. Data expert Mark Bentley, business development director at HDI, will look at emerging growth sectors, and Meaningful Vision founder Maria Vanifatova will analyse the latest trends in the quick service restaurant market. Propel 500 – 2026 will be released on Friday, 9 January at 9am and will be available free to Premium Club subscribers. The report will be available to non-Premium Club subscribers for £595 plus VAT. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up and to pre-order Propel 500 – 2026.