A popular fast-food chain will close restaurants after appointing administrators from Quantuma to lead a restructuring programme.
Leon has announced there will be job cuts and the boss of the popular fast-food chain pointed the finger at Rachel Reeves over her “unsustainable” tax burdens on the hospitality sector.
Leon does not know how many restaurants will have to close nor know how many workers will lose their jobs.
Advisers from Quantuma have been hired after Leon applied for the administration order, they will then form a proposal for a company voluntary arrangement (CVA) restructuring plan.
Leon has 22 franchised restaurants and 44 company owned restaurants.
Following the Chancellor’s Autumn Budget in November, Kate Nicholls, chair of UKHospitality, said, “Wage rises, holiday taxes and monumental increases in rateable values have put even further pressure on hospitality businesses, as a result of this Budget.
“A 5p business rates discount is simply not enough to offset these costs and redress the damage it will do to business viability and job opportunities.
“This is exactly why we called for the government to use the maximum possible discount it had the power to implement, which could have genuinely delivered lower business rates.
“Instead, we have a situation where hospitality businesses are checking their wage bills and rateable values, and their hearts are sinking at the eye-watering increases before them.
“Once again, the government is trying to balance the books disproportionately on the backs of the high street – and risks creating a two-tier economy.
“Our tax burden remains the highest in the economy and we need urgent action to reduce the cost of doing business. The only way to cut the cost of living is to reduce the cost of doing business, and this Budget does the opposite.”
