Leon co-founder set to reclaim the chain from Asda for a fraction of its 2021 sale price

Lion co-founder John Vincent is in discussions to buy back the fast food brand from Asda, in a move that could see him regain control of the chain for less than a third of its 2021 selling price.

The businessman, who founded Lyon alongside Henry Dimbleby and Allegra McEvedy in 2004, is understood to be in advanced negotiations with Asda – which acquired Lyon two years ago from the Issa brothers’ EG group. Industry insiders suggest the deal could be worth between £30m and £50m, compared to the £100m Issa paid just four years ago.

The Issa brothers, famous for building EG Group’s front-running petrol empire, bought Lyon in 2021 before transferring it to Asda in 2023 as part of a £2bn refinancing to reduce EG’s heavy debt burden.

Under Asda’s ownership, Leon has faced increasing criticism for moving away from the original “natural fast food” ethos. Dimbleby, now a leading food policy campaigner, recently warned that the chain’s commitment to healthy eating had been “destroyed”, accusing its current management of chasing sales through “sugar, salt and cheapness” rather than nutritional quality.

If completed, the deal would represent a return to familiar territory for Vincent – ​​but also a significant turnaround challenge. Lyon’s latest accounts show sales fell from £64.9m to £62.5m in 2024, while pre-tax losses narrowed to £8.4m from £19.6m the previous year.

A city source familiar with the negotiations said any new owner would need to undertake a “complete transformation” to restore the brand’s health and profitability. The chain, which once prided itself on its sustainability credentials and Mediterranean-inspired menu, is struggling to compete in the increasingly crowded fast-casual market.

The talks come at a time when Asda itself is struggling with heavy debt and increasing competitive pressures. The supermarket, jointly owned by the Issa brothers and private equity firm TDR Capital, made a loss of nearly £600 million last year. Financing costs rose 38 percent, reflecting the burden of rising interest rates.

Asda’s market share has also been reduced by rivals Aldi and Lidl, as well as renewed competition from Tesco, Sainsbury’s and Morrions.

A successful buyback would allow Vincent’s to restore Leon’s founding mission of serving “food that tastes good and is good for you” — a concept that once earned the chain cult status among the city’s health-conscious professionals.

While neither Vincent nor Asda have commented publicly on the deal, sources suggest an agreement could be reached imminently, paving the way for one of the most interesting comeback stories in the UK restaurant sector.