The 1.5 acre site sits seven floors above Kensington High Street and has been occupied by Richard Branson’s Virgin Limited Edition as a tenant since 1981.
A statement posted on the Roof Gardens website said the business had struggled to remain profitable.
It follows a raft of high-profile London restaurant closures last year with many operators hit with rising rents, business rates and food costs.
According to The Times the Roof Gardens’ 85 staff were told yesterday (2 January) that they were being made redundant after returning from the Christmas break.
Babylon held two AA Rosettes and was recommended in the Michelin Guide, but did not hold a star.
The restaurant tweeted today (3 January) that it was now closed and ‘had welcomed its last guests’.
A statement on the Roof Gardens website said: “In an ever changing London market The Roof Gardens has stood the test of time but in the face of unpredictable market conditions and a challenge to remain profitable, we feel that the time has come for us to close our doors.
“We are certain The Roof Gardens will continue to be one of London’s most spectacular and extraordinary landmarks and look forward to seeing what’s next for this beautiful venue.”
The Roof Gardens originally opened in the 1930’s as part of the Derry and Toms department store and is a Grade II listed site.