Asda has offloaded fast food chain Leon – selling it back to its co-founder at a steep discount.
John Vincent, who helped launch the business in 2004, says he’s bringing it back to its roots.
Although the terms of the deal were not disclosed by the two firms, The Times reported that Vincent paid the supermarket between £30m and £50m.
This is substantially less than the £100m that the billionaire Issa brothers, Mohsin and Zuber, paid to buy it in 2021.
Going cheap: Asda has offloaded fast food chain Leon – selling it back to its co-founder at a steep discount
The sale includes 46 Leon restaurants and 20 UK franchises, along with three franchise sites in the Netherlands and one in Italy.
Leon, which employs 1,120 staff, has grappled with falling sales recently and complained of a ‘challenging’ economy in its latest accounts.
Sales tumbled 3.7 per cent to £62.5m while it narrowed losses from £19.6m to £8.4m, with the firm noting high electricity costs weighing it down.
Vincent said: ‘My time away from Leon has given me new perspectives – and I’m excited by what we can achieve for people this time round.Â
‘There will likely be some big decisions ahead, but first we need to take a good look under the bonnet.’
One of its other co-founders, Henry Dimbleby, had criticised Asda’s stewardship of the brand.
He last month accused the business of straying from its ethos of healthy and convenient food. He told The Telegraph: ‘What they’ve gone to here is they’ve realised chips sell, air fryers sell – that’s the cheapest way to make money.
‘But in the long-term, that’s going to destroy the brand.’
Leon started selling salads in boxes but has since expanded its menu to include products such as chicken nuggets and cookies.
The acquisition of Leon was part of a buying spree that saw the Issa brothers hoover up petrol forecourt and roadside service chains around the world.
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