A POPULAR restaurant chain saw its profits nosedive before it fell into administration and was forced to close all four of its remaining sites.
Ping Pong was known for its range of more than 40 dim sum dishes and affordable prices, making it a staple for almost 20 years.
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It was founded in 2005 by restaurateur Kurt Zdesar and in just four years boasted 13 venues.
But the company tumbled into administration earlier this year after it saw revenues decline by up to 25% and faced disputes with landlords and higher National Insurance costs.
As a result it was forced to close sites in Soho, Southbank, St Christopher’s Place and Bow Bells House.
In June of this year the parent company of Ping Pong, AJT Dimsum, was set for a restructure after filing a notice of intention to appoint an administrator.
The company had lined up Begbies Traynor to oversee the process.
It had been hoped this would save the struggling chain but it collapsed under economic difficulty and higher costs.
An update from the administrators has now revealed the reasons for the administration.
It said: “The business saw a sharp downturn in 2025, with revenues falling by around 20-25% compared to the previous year.
“From April 2025, higher employer National Insurance contributions, an increased National Living Wage, and rising business rates added roughly £500k to annual costs, which the business could not sustain.”
It added that broader market risks, including volatile energy prices due to the war in Ukraine, industrial action and shipping delays had added to trading difficulties.
The company initially attempted to restructure its head office and launched a series of marketing campaigns but these measures were not enough to save it.
After taking on Begbies Traynor it was clear by the summer that the company’s performance had not improved.
Meanwhile, its finances were forecast to get worse given the market conditions, so it was decided it would not be able to trade out of its current position.
The chain was unable to take on additional funding so it could not enter into a Company Voluntary Arrangement, which would have allowed it to stay open and pay back its creditors.
At a board meeting on June 4, 2025 it was decided that the company should be placed into administration.
In a post on Instagram in July the chain announced that it had shuttered all its remaining restaurants.
It said: “It’s a wrap. After 20 unforgettable years, all Ping Pong locations are now permanently closed.
“We’re incredibly proud of what we built, an independent hospitality brand full of creativity, flavour and soul.
“To everyone who joined us over the years, for dim sum dates, happy hours, bottomless brunches, and just-because catch-ups – thank you… It’s been sum-thing truly special.”
Other restaurant closures
Italian chain Gusto was forced to shut six of its locations as part of a deal to save the brand.
The chain is being taken over by private equity investment firm Cherry Equity Partners through a pre-pack administration process.
This is an insolvency process for a business to sell its assets before appointing administrators.
It will shut its restaurants in Alderley Edge, Cookridge, Edinburgh, Heswall, Leeds and Newcastle as part of the deal.
The closure means 190 jobs will be lost but a further 300 will be saved.
Meanwhile, Oakman Inns and Restaurants said it would close six sites and transfer a further 12 as part of its administration.
It blamed the fallout from the pandemic and higher interest rates for its financial struggles.
Plus in July BrewDog also announced it would close ten sites – including its flagship branch in Aberdeen.
The company already closed six sites at the beginning of the year after a £63million loss.
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