Blackburn’s billionaire Issa brothers have today acquired the healthy fast food chain LEON for reportedly close to £100 million.
Just months after making a record-breaking £6.8 billion deal to purchase supermarket chain ASDA from US shopping giant Walmart, 70 LEON restaurants across the UK and Europe have now been sold to Mohsin and Zuber Issa to form part of their giant petrol forecourt business EG Group.
EG Group said that the acquisition is “complementary” as it seeks to expand the food side of its business, and has plans to open around 20 additional LEON sites a year from 2022.
The deal includes 42 company-owned restaurants, as well as 29 franchise sites, which are mainly found in airports and train stations across the UK – including a Manchester branch based in Manchester Piccadilly station – and a handful of European countries, such as the Netherlands and Spain.
EG Group has also committed to keeping on LEON’s management team and staff.
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Speaking about the acquisition of LEON in a joint statement, the Issa brothers said: “Leon is a fantastic brand that we have long admired.
“As established entrepreneurs in the food service retail market ourselves, we have a huge admiration for the business that John and the Leon team have built over the years, and firmly believe that their culture and values closely align with our own.”
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Mohsin and Zuber Issa started out life as entrepreneurs in a garage, which their dad – who had worked in a woollen mill – bought, before branching out on their own by first renting a petrol station for two years, then buying their first forecourt – a derelict freehold site in Bury in 2001 – and forming Euro Garages.
The EG Group now has almost 6,000 sites across 10 countries, from the UK to the US and Australia.
It runs outlets for Greggs, Starbucks and KFC, and employs 44,000 people.
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LEON was founded in London in 2004 by John Vincent, Henry Dimbleby and Allegra McEvedy, with an importance placed on creating a menu of “healthy fast-food”.
Mr Vincent said that “in some ways this is a sad day for me, to part company with the business I founded 17 years ago in Carnaby Street”, but admitted he was “confident under the new ownership”.
He added that he has “had the pleasure of getting to know Mohsin and Zuber [Issa]” over the last few years.
“They have been enthusiastic customers of LEON, going out of their way to eat here whenever they visit London. They are decent, hard-working business people who are committed to sustaining and further strengthening the values and culture that we have built”.
Mr Vincent also said he is keen to watch the the brand “flourish and have even greater appeal to a broader customer base, especially outside of London”.
Featured Image – LEON
Business
WeWork is closing its enormous office in Spinningfields, with tenants told to move out
Daisy Jackson
Co-working giant WeWork has announced the shock closure of its flagship space in Manchester, an enormous unit in the heart of Spinningfields.
Those who rent desks or offices within the space have been served notice to move out by the end of the month.
It’s understood that WeWork’s three remaining locations in Manchester are unaffected.
The US-based workspace company first moved into the 60,000sq ft unit at No.1 Spinningfields in 2017, offering flexible solutions to businesses of varying sizes.
But in the last few years it’s faced major financial difficulties, with WeWork eventually filing for bankruptcy in the States.
It was previously valued at $47 billion before its bankruptcy overseas.
On the closure of its huge Manchester office, a WeWork spokesperson said: “As part of WeWork’s efforts to achieve a sustainable capital structure and profitable business to serve our members for the long term, we have made the decision to stop operating at No1 Spinningfields in Manchester.
“We look forward to continuing to provide our members with flexible space solutions across our other locations in the city and the rest of the UK, which remains a key market for us.”
An email sent to tenants said: “After carefully evaluating our offerings in Manchester, we have made the decision to stop operating at WeWork No 1 Spinningfields… the move out will occur by 31 May 2024.
“We understand this may cause disruption to your business and are very sorry for any inconvenience this may cause.”
Have you been affected by WeWork’s Manchester closure? Email [email protected] who can help with central, flexible office spaces.
Business
Premier League agrees new spending cap after ‘majority of clubs’ vote in favour
Danny Jones
The Premier League has reached an agreement in principle on a new spending cap for all teams as the English top flight looks to replace the current Profitability and Sustainability Rules (PSR).
Set to be installed from the 2025/26 season onwards once fully ratified, revised spending limits will placed on teams in the first division, the number for which will be calculated in relation to a multiple of the money earned in prize money and TV rights by the lowest-earning club in the Premier League.
If approved at the AGM (annual general meeting) this June, the new model will replace the existing PSR system under which multiple clubs have broken FFP and been charged with other breaches over recent years, with Everton and Nottingham Forest having already been deducted points this season.
Although 16 of the 20 Premier League clubs reportedly agreed to the newly proposed regulations, four clubs were not in favour, with Manchester City, Man United and Aston Villa all said to have voted against the decision, while Chelsea chose to abstain.
The new max-spending model is being referred to as ‘anchoring’ or ‘tethering’, which will take into account total amounts spent on buying players, weekly wages, agents’ fees and more.
If successful following a final vote in June and brought through the season after next, the aim is to curb the increasing financial gap between the top and bottom of the table by preventing things like big sponsorships which may otherwise see clubs assert massive spending power during transfer windows.
According to the Independent, cost controls will now “limit club expenditure on salaries, signing and fees to 85 per cent of total revenue” for those not competing in European competitions.
This comes after Premier League teams previously the latest UEFA rules that will see those playing in the likes of the Champions, Europa and Conference League only allowed to spend 70% of that revenue, given the added financial uplift from qualifying for these tournaments.
While 16 yeas were enough to see the initial vote move forward, it will only require 14 out of 20 clubs to agree to the rule change in June for the motion to be fully passed.
A Professional Footballers’ Association (PFA) spokesperson said: “We will obviously wait to see further details of these specific proposals, but we have always been clear that we would oppose any measure that would place a ‘hard’ cap on player wages.
“There is an established process in place to ensure that proposals like this, which would directly impact our members, have to be properly consulted on.”