1 December 2020
It is heard that healthy restaurant chain, Leon, has served its creditors details of a restructuring plan. Included in the plan is:
- A multimillion pound investment from shareholders to secure its future
- 4 restaurants switching to a rent-free model
- The majority of restaurants switching to turnover-based rents
The plan is proposed to last just 2 years, in oppose to the typical 3 year period.
23 November 2020
Restaurant chain Leon becomes the latest to explore an insolvency mechanism in order to try and secure its future, amid challenges brought on from the coronavirus pandemic, according to Sky News.
Leon is heard to be drawing up proposals with advisers, for a company voluntary arrangement. This would involve seeking rent cuts from landlords and could involve some site closures for those not performing. Jobs are also at risk – though the implications for jobs and any set figures are unknown as it stands.
It was just earlier in May that Quantuma were reported to be drafted in to help the chain secure rent cuts from landlords.
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 75 sites across the UK, mainly in busy city centres and transport hubs, as well as in Washington DC, Oslo, Amsterdam, Dublin, Rotterdam and Gran Canaria.
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.
Categories: What is a CVA or Company voluntary arrangement?