Landlords approve Leon’s rescue plan to save 670 jobs
Healthy fast food chain Leon has secured backing from its landlords to implement a rescue plan which will save 670 jobs.
The company announced this evening that 90 per cent of creditors approved the company voluntary arrangement proposals, which will allow Leon to switch to turnover-rents during the coronavirus pandemic.
Leon’s branches, which are predominantly in city centres and travel hubs, have suffered a sharp drop in sales due to a reduction in office workers and people using public transport.
The chain, which has 44 sites in the UK, secured £76.3m in revenue last year and had planned to open 30 new restaurants in 2020, before the pandemic hit in March.
Andrew Andronikou, managing director at Quantuma, which is overseeing the CVA process, said: “Given the struggles of the retail and casual dining sectors as a result of the pandemic, and being in the run up to Christmas, securing 670 jobs at Leon is a real positive to end the year.
“We are pleased that the majority of creditors have supported the proposals, which will enable us to work with the business as it recovers and provide a strong foundation from which it can return to the strong growing business it was in 2019.
“The CVA has been structured in a way to support Leon while it continues to be affected by reduced footfall and the ongoing uncertainties as measures continue to be deployed to deal with the Covid-19 pandemic, whilst delivering the best possible outcome for creditors.”