Healthy fast food chain Leon explores restructuring options
Healthy fast food chain Leon is reportedly drawing up plans for an insolvency arrangement to allow it to secure rent cuts from its landlords.
The firm is working on proposals for a company voluntary arrangement, and has hired advisors to help with the plans, Sky News reported.
The proposals, which are likely to involve seeking permanent rent reductions from landlords, are at an early stage, the broadcaster said.
Leon, which was founded by Henry Dimbleby, John Vincent and chef Allegra McEvedy, appointed Quantuma as an advisor, the Sunday Times revealed in May.
Most of the company’s branches are in city centres and transport hubs that have seen footfall numbers plummet due to a drop in commuter traffic.
The casual dining sector has been badly impacted by the coronavirus pandemic, with chains such as Pizza Hut and Yo Sushi launching CVAs, and others, including Byron and Carluccio’s, filing for administration.
“If a company as good as that needs a CVA, it shows how badly the industry has been affected,” one source told Sky News.
City PM has contacted Leon for comment.