Karen’s Diner ceases trading as owner ‘forced into liquidation’

The group’s recently announced summer pop up tour is now ‘very unlikely to take place’ after Jeremy Frost and Patrick Wadsted of Frost Group Limited were named as liquidators for Viral Ventures UK, which is owned by Australian parent company Viral Ventures Global.

Their appointment comes after the presentation of a winding up petition by a creditor.

According to its most recent accounts filed to Companies House, Viral Ventures UK owes more than £400,000 to creditors.

Back in June it was reported that Karen’s Diner had rowed back on its UK expansion ambitions​ ​having closed all restaurants except its site in London Angel, which is now understood to have also ceased trading.

The group subsequently announced plans for a summer tour of pop up events across the country between June and September in locations including Romford, Blackpool, Liverpool, and Plymouth.

According to its liquidators, Karen’s Diner has 77 staff members with the majority being on zero-hour contracts.

Additionally, it adds that more than 2,500 clients have paid for events that are ‘now very unlikely to take place’.

Those who have made bookings with deposits for future shows, which include dates in Glasgow advertised for this weekend, are being encouraged to contact their credit card providers as insurance protections may be in place to assist with refunds.

“It is always a challenging moment when a business, especially one with the reach of Viral Ventures, is forced into liquidation,” says Frost.

“We understand the disappointment and concern, particularly for those with deposits for upcoming shows. Our priority is to guide those affected through this process and ensure the necessary steps are taken.”

A dedicated website​​ has been set up to support customers, creditors and employees affected by the group’s collapse, and Frost Group Ltd is working closely with all parties involved to ‘facilitate the best possible outcome’.

“We extend our sympathy to the employees, customers, and creditors at this difficult time. We encourage anyone impacted to visit the website for guidance on the next steps and available resources,” Frost adds.

Karen’s Diner, whose name and concept is inspired by a pejorative stereotype of a white, 1970s-born woman who is prone to asking for the manager, has often courted controversy since arriving on UK shores back in 2022​​.

In March this year, the group’s restaurant in Prestwich hosted a guest appearance by controversial far-right commentator Katie Hopkins, which led to police being called to 'monitor' a 'small number of protesters' after demonstrators from organisations Stand Up To Racism and Unite Against Fascism gathered outside the restaurant.

Traces of drugs including cocaine, heroin, MDMA and ketamine were found in the group’s Brighton restaurant the same month, which led to its closure​​.