UK-based fast-food chain Leon has filed for an administration order – a move that could result in the closure of several underperforming outlets, and lead to job losses.
The company has appointed Quantuma as its administrator to oversee the restructuring process.
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All 71 restaurants – 44 of which are directly operated by the company – remain open as of mid-December 2025, and Leon has not yet disclosed how many outlets or roles will be affected.
The company employs 1,000 people and will seek to redeploy staff into locations that continue to trade.
It has also reached an arrangement with sandwich chain Pret A Manger to create a dedicated recruitment route for Leon employees who may be made redundant.
The entry into administration follows the return of the brand to co-founder John Vincent, who recently reacquired Leon from Asda.
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By GlobalDataVincent sold Leon to forecourt operator EG Group for £100m ($133.6m) in 2021.
Asda took control of Leon as part of a wider transaction valued at around £2bn, before selling it back to Vincent in 2025.
The chain had been losing around £10m a year and his immediate focus was on shutting its weakest locations, as reported by the BBC.
Vincent stated: “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.”
He added that customers are likely to see substantial changes to Leon’s menu from spring 2025 as part of the restructuring.
He believes that the business had moved away from its founding principles while under EG Group and Asda ownership, although he acknowledges the difficulties they faced operating a health-focused fast-food concept.
He continued: “In the last two years, Asda had bigger fish to fry, and Leon was always a business they didn’t feel fitted their strategy.
“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.”
Asda previously stated that the disposal of Leon would enable the retailer to concentrate on its core supermarket and fuel operations.
Leon cited internal operational problems, altered commuting and working habits since the Covid-19 pandemic, and rising tax burdens as factors behind its current position. These issues are all mirrored across the wider hospitality industry.
Vincent added: “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.”
