Leon co-founder John Vincent is in discussions to buy back the fast-food brand from Asda, in a move that could help him regain control of the chain at less than a third of its 2021 sale price.
The entrepreneur, who founded Leon with Henry Dimbleby and Allegra McEvedy in 2004, is understood to be in advanced talks with Asda – which acquired Leon from the Issa brothers' EG Group two years ago. Industry insiders suggest the deal could be worth between £30 million and £50 million, while Issaas paid £100 million just four years ago.
The Issa brothers, known for building EG Group's petrol forecourt empire, bought Lyon in 2021 before transferring it to Asda in 2023 as part of a £2 billion refinancing exercise to reduce EG's heavy debt load.
Under Asda's ownership, Lyon has faced increasing criticism for deviating from its original “naturally fast food” ethos. Dimbleby, now a leading food policy campaigner, recently warned that the chain's commitment to healthy eating was being “eroded”, accusing its current management of chasing sales through “sugar, salt and cheapness” rather than nutritional quality.
If completed, the deal would mark a return to familiar territory for Vincent – but it would also mark a major change. Lyon's latest accounts show sales fell to £62.5 million in 2024 from £64.9 million, while pre-tax losses narrowed to £8.4 million from £19.6 million the previous year.
A City source familiar with the negotiations said any new owner would need to make a “complete turnaround” to restore the brand's health and profitability. The chain, once proud of its sustainability credentials and Mediterranean-inspired menu, is struggling to compete in an increasingly crowded fast-casual dining marketplace.
The talks come as Asda itself struggles with heavy debt and increasing competitive pressure. The supermarket, jointly owned by the Issa brothers and private equity firm TDR Capital, made losses of almost £600 million last year. Finance costs increased by 38 percent, reflecting the burden of higher interest rates.
Asda's market share has also declined due to new competition from discount rivals Aldi and Lidl, as well as Tesco, Sainsbury's and Morrisons.
A successful buyback would allow Vincent to restore Lyon's founding mission of offering “food that tastes good and does you good” – a concept that once earned the chain cult status among health-conscious city professionals.
Although neither Vincent nor Asda have commented publicly on the deal, sources suggest an agreement could be reached soon, setting the stage for one of the most interesting comeback stories in the UK restaurant sector.
jamie young
Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.
