Leon Restaurants, having filed a Company Voluntary Arrangement (CVA) proposal, submitted ot to a vote by shareholders and creditors.
The results revealed that 90% of creditors of Leon have approved the proposed plan to restructure the firm’s finances, preserving many jobs.
The natural fast food chain joined the food scene in 2005, and now has more than 70 restaurants and over 1000 employees.
Despite starting 2020 as a profitable and growing business, the impact of the COVID-19 pandemic saw Leon experience reduced sales as a result of the significant reduction in the number of city centre workers attending their offices, limited domestic and international tourists, as well as the impact of measures designed to limit the spread of the disease.
Accordingly, the CVA is focused upon ensuring that Leon’s business can deal with ongoing uncertainties created by the pandemic and provide a platform to return to its previous positive trajectory, with creditors having accepted a proposal aligned to turnover-based rents.
John Vincent, Founder and CEO of Leon, said, ““I would like to thank all the landlords and everyone else who has supported us through this process. This gives us the platform to rebuild Leon and return it to growth.”