Leon has served creditors with a restructuring plan that includes a multimillion pound investment from shareholders to secure its future.

Sky News reports a proposed company voluntary arrangement (CVA) would see four of Leon’s restaurants switch to a rent-free model, while the majority of its 60 outlets will switch to turnover-based rents

The Leon CVA will be in place for two years, and as part of the restructuring, Leon’s shareholders will inject £3m into the company if its cash reserves fall below £2.25m for more than 28 consecutive days.

The CVA is not expected to trigger any store closures or job losses among Leon’s 650-strong workforce.

John Vincent, Leon co-founder and CEO, said: “In common with the whole hospitality sector, the past nine months have been the most difficult in Leon’s 16-year history.

“We started the year as a profitable and growing business but the effects of the repeated lockdowns and tier restrictions have made our current business model untenable.

“We have also engaged extensively with the vast majority of our landlords across the last few months.”

He said the company had “a duty to secure Leon’s future for the benefit of all our stakeholders and, after careful reflection, believe this CVA is the best way of doing that”.

“It will give the business the breathing space it needs before it can fully resume normal trading and look to grow again.”