Karen's Diner

PHOTO: Karen’s Diner marketed itself on its deliberately bad service and rude staff. (File photo). SUPPLIED

Company behind Karen’s Diner Goes into Liquidation

The demise of Karen’s Diner in New Zealand and its Australian parent company

The company behind Karen’s Diner in New Zealand has recently entered into liquidation, following the same fate as its Australian parent company, just a month prior.

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Appointment of Liquidator

Bryan Williams, representing BWA Insolvency, has been appointed as the liquidator for Viral Ventures NZ, the operator of Karen’s Diner in New Zealand.

A Brief History of Karen’s Diner

Viral Ventures introduced Karen’s Diner, the sole establishment of its kind in New Zealand, situated in the Auckland suburb of Mt Eden in August of last year. Known for its deliberately bad service and rude staff, the 1950s Americana-themed chain gained massive popularity on social media after its initial launch in Sydney, Australia, in 2021, accumulating over 1.5 billion TikTok views and garnering millions of followers.

Operational Challenges and Closure

However, earlier this year, Karen’s Diner faced significant challenges, leading Viral Ventures (Australia) to announce its winding-up and the appointment of liquidators on May 30. Prior to the liquidation, several Karen’s Diner locations, categorized as “pop-up” stores, had already closed, and now, restaurants in Melbourne, Perth, and the Gold Coast have also ceased operations.

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Current Status and Future Proceedings

According to Williams, the Auckland venue has already closed its doors, with equipment being removed from the site. The business is currently dealing with more than 20 creditors, and Williams is expected to submit his initial report on July 11.

At the beginning of 2023, Karen’s Diner boasted 19 locations across Australia, New Zealand, the UK, the US, and Indonesia. Viral Ventures had ambitious plans to expand to a total of 60 eateries worldwide by the year’s end, as reported by Australian media.

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SOURCE: STUFF

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