Update 1st June 2026
has exited administration after creditors, including HMRC, unanimously backed a CVA that allows the John Vincent-led fast food chain to continue with 43 restaurants, following a restructuring that included a £2.5 million founder injection and a reduction of loss-making sites.
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Leon, the fast food chain, has appointed administrators at Quantuma stating that its main priority is to ‘shut loss-making restaurants’.
It was just earlier in May that Quantuma were reported to be drafted in to help the chain secure rent cuts from landlords.
Mr Vincent bought back the chain from Asda last month for a reported £30m. He is now planning to turn it around. Mr Vincent stated, “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, which has gone on to become a key player in the healthy fast-food sector, was set up in 2004 by Mr Dimbleby, John Vincent and chef, Allegra McEvedy. The menu is inspired from the founders; Mediterranean roots- mixing its flavours, variety and natural healthiness.
It operates from more than 44 sites across the UK and has 22 franchises
It has faced difficulty, as have many other players in the fast-food market, particularly due to the slump in commuter numbers, which were a key target consumer group.
It is understood that the chain will try to exit the administration using a CVA.
Readers Guide To the Administration Process
As Leon enters formal insolvency, stakeholders often face significant uncertainty. Here is a breakdown of the legal framework and what it means for those affected.
1. What is a “Basic” Administration?
Administration is a powerful statutory process governed by the Insolvency Act 1986. It is triggered when a company is insolvent and can no longer meet its debts. An independent Licensed Insolvency Practitioner (IP) is appointed to take control from the directors. A key feature is the statutory moratorium—a legal “shield” that instantly stops all legal actions, such as winding-up petitions or bailiff visits, providing the “breathing space” needed to rescue the business or achieve a better result for creditors than immediate closure.
2. Who Gets Paid First?
The law dictates a strict hierarchy for the distribution of funds. Fixed charge holders (typically banks with security over property) are paid first. Once the administrator’s fees are covered, preferential creditors are next; this includes employees (for specific arrears) and HMRC for taxes like VAT and PAYE. Following these are floating charge holders, and finally, unsecured creditors—which include trade suppliers and customers—who are at the back of the queue and frequently receive only a small fraction of their debt.
3. What Happens to Employees?
Entering administration does not mean all jobs are instantly lost. For the first 14 days, the administrator assesses the company’s viability and may make redundancies. If a member of staff is kept on past this 14-day window, the administrator “adopts” their contract, meaning their ongoing wages and rights become a priority expense. Those made redundant can claim for unpaid wages and notice pay via the Redundancy Payments Service if the company has insufficient assets to cover these costs.
4. What About Suppliers and Customers?
Suppliers and customers are generally unsecured creditors. Suppliers should stop granting credit under old agreements and negotiate “pro-forma” (upfront) terms for any new supply to the administrator. For customers, deposits and gift cards are rarely honoured. However, those who paid over £100 via credit card may be protected under Section 75 of the Consumer Credit Act and should contact their bank immediately to initiate a claim.
