The rude restaurant group, which started in Australia in 2021, has already closed four of its remaining sites.
Liquidators have been appointed to the parent company behind rude restaurant group Karen’s Diner.
Jeremy Frost and Patrick Wadsted of Frost Group Limited are managing Viral Ventures UK Ltd’s liquidation following a creditor presenting a winding up petition.
Karen’s Diner was launched in Sydney, Australia in 2021 by themed events business Viral Ventures Global and opened its first UK restaurants in Sheffield, Manchester and Birmingham in 2022.
The restaurants became known for their deliberately rude waiters, also known as Karens, and created a sensation on social media, attracting millions of views on TikTok.
It continued its rapid expansion into 2023, with launches in London’s Islington, Barnet and Brighton.
The Brighton outpost closed in March this year after police found high drug readings on a baby changing table.
In June, Karen’s Diner confirmed in a statement to Manchester Evening News that it will focus on pop-up events, such as Karen’s Diner On Tour, instead of its restaurants.
The Karen’s Diner website still lists five locations, though its Birmingham, Sheffield, Manchester and Barnet restaurants are confirmed to have closed. Only its Islington site is accepting reservations.
The Karen’s Hotel in Barnet, which launched in March 2023 under the same concept, also appears to have closed, as the bookings page shows a 404 error.
Liquidators added Viral Ventures UK Ltd had faced “mounting financial pressure”.
According to documents filed on Companies House for the year ended 31 December 2022, the group’s tangible assets were short of £10,000, while its creditors amounts falling due within one year had ballooned from £174,999 the previous year to over £400,000.
Viral Ventures has 77 staff members, with the large majority of them working on zero-hour contracts.
Over 2,500 clients had also paid for events that are now “very unlikely to take place”, according to liquidators.
Those who had made bookings with deposits were advised to contact their credit card providers.
Jeremy Frost, director of Frost Group Ltd, said: “It is always a challenging moment when a business, especially one with the reach of Viral Ventures, is forced into liquidation.
“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.”
Frost Group added it will work closely with all parties involved to find “the best possible outcome”.
Image: Sarah Lucy Brown