In a major update, the popular British fast-food chain Leon has announced it has entered administration, a legal process designed to provide companies with breathing space from creditor actions while they work on restructuring proposals. The move comes amid falling sales, rising costs, and shifts in consumer habits that have hit demand on the UK high street.
As part of the administration process, Leon has revealed plans to close roughly 20 of its 44 company-owned restaurants, with the closures primarily affecting high-street locations. This significant reduction represents a major blow for the business, which currently operates around 70 restaurants nationwide, including 22 franchised branches.
Leon’s co-founder and recent buyer, John Vincent, reacquired the chain from Asda in late 2025 in a deal reported to be significantly lower than its prior sale price, hoping to restore growth after years of losses and strategic drift under previous owners. However, the company has now acknowledged that job cuts will be unavoidable as a result of the restaurant closures.
Speaking on the circumstances, Mr. Vincent said, “In the last two years, Asda had bigger fish to fry, and Leon was always a business they didn’t feel fitted their strategy.” He went on to explain that the company has been losing £10 million each year, citing upcoming business rate reforms and escalating running costs as primary drivers behind the restaurant shutdown.
Indeed, the day’s announcement comes as the UK government plans to abolish business rate relief completely from April 2026, having already been slashed from 75% to 40%. This, coupled with other financial pressures, has proven unsustainable for the chain.
Leon has stated that the administration process and restructuring plan aim to help the business emerge leaner, with a renewed focus on core values and a more sustainable cost base. The company has enlisted advisers from Quantuma to oversee the administration process and will hold discussions with landlords to outline different possibilities for the business’s future path.
Despite the challenges, Leon has pledged to support affected staff where possible, exploring internal transfers and partnerships with other employers to assist team members impacted by the closures. The company also stated that all remaining restaurants will continue to trade while options are explored with landlords and other stakeholders.
The news of Leon’s administration and planned closures reflects the broader challenges facing the UK’s high street, as businesses grapple with changing consumer habits, rising costs, and an uncertain economic climate. As the fast-food chain works to restructure and regain its footing, all eyes will be on the outcome of its efforts to secure a more sustainable future.
