London’s culinary scene has seen a long-standing fixture exit the market, as the Ping Pong dim sum restaurant group officially ceased trading, leading to the immediate closure of its final four locations across the city. The closure marks the end of a 20-year run for the brand, which specialized in offering a modern take on traditional dim sum.
The affected sites are situated in prominent London areas: Soho, Southbank, Bow Bells House, and St Christopher’s Place. The announcement, confirming the permanent closure, was made by the company via its Instagram account.
Two Decades in the Capital
Founded in 2005 by restaurateur Kurt Zdesar with financial backing from Igor Sagiryan, Ping Pong established itself as a popular destination for dim sum and cocktails, particularly catering to a younger demographic and after-work crowds. At its peak, and specifically by the end of 2022, the group operated six restaurants in London, supported by a central production kitchen, and employed a significant workforce of 255 people.
Financial Headwinds and Pandemic Impact
Like many businesses in the hospitality sector, Ping Pong faced considerable financial challenges in recent years. Reports indicate the group had specifically struggled with accumulating Covid debt and meeting rent repayments. This pressure is reflected in its financial performance leading up to the closure.
The company reported substantial losses in the years preceding the final period before administration. Filings show a loss of £1.4m in the year ending March 2020, the period immediately impacted by the initial stages of the global pandemic. This worsened in the subsequent 12 months, with losses escalating to £1.86m in the year to March 2021. A brief recovery was noted in the year to March 2022, posting a profit of £334,000, but this proved insufficient to overcome accumulated difficulties.
The pandemic was explicitly cited by the company as causing “significant disruption” to its operations. To navigate these difficult periods, the business was reportedly supported by external financing, including a £500,000 loan from Sagiryan.
Administration and Sale Process
The financial pressures eventually led to the appointment of administrators. Begbies Traynor was appointed as administrators for the Ping Pong group in November 2022. This step often precedes restructuring or liquidation for distressed companies.
Following the administration process, the business underwent a pre-pack sale. This mechanism allows for the sale of a company’s assets or business as a going concern almost immediately after administrators are appointed, typically to a pre-agreed buyer. In this instance, the pre-pack sale was concluded with three company directors, who acquired the business for £3.21m.
Despite this sale aimed at providing a path forward, the underlying financial strains and operational challenges appear to have persisted, ultimately leading to the cessation of trading and the closure of the remaining four locations.
Conclusion
The permanent closure of Ping Pong’s remaining London restaurants underscores the ongoing volatility and challenges within the UK’s hospitality industry, particularly for businesses grappling with legacy debt and altered consumer behaviour post-pandemic. The end of its 20-year journey leaves a void for its patrons and adds to the changing landscape of London’s diverse dining scene.
