Fast food chain Leon has confirmed it will shut a number of its restaurants and cut jobs after appointing administrators to lead a major restructuring.
The company’s boss criticised the hospitality industry’s “unsustainable” tax burden, which he cited as a contributing factor.
It is understood that the exact number of closures or affected workers has not yet been decided.
The group has hired advisers from Quantuma after applying for an administration order.
It said it will then form proposals for a company voluntary arrangement (CVA) restructuring plan in order to overhaul its operations to help secure the brand’s long-term future.
Co-founder John Vincent bought the business back from Asda in October, four years after it was taken over by the billionaire Issa brothers.
Leon was founded in 2004 by Mr Vincent, Henry Dimbleby and Allegra McEvedy.
The chain runs 44 company-owned restaurants and has 22 franchised restaurants.