Leon has said it will shut a number of restaurants after appointing administrators to lead a major restructuring.
The fast food chain said it will cut jobs as a result, as its boss criticised the hospitality industry’s “unsustainable” tax burden.
It is understood the company has not yet decided exactly how many restaurants will need to close or how many workers will be affected.
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.
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