Ping Pong hit with £500K increased costs ahead of collapse

Ping Pong was hit with an additional £500,000 annual costs ahead of entering administration earlier this summer, company documents have revealed.

From April 2025, higher employer National Insurance contributions, an increased National Living Wage and rising business rates added around £500,000 to annual costs, which “the business could not sustain”.

The business was also impacted by volatile energy prices, shipping delays and port congestion impacting imported products. In addition, industrial action on London’s rail and tube networks adversely impacted footfall – all of which contributing to difficult trading conditions.

A report from administrators Begbies Traynor stated the business “saw a sharp downturn in 2025” with revenues falling 20-25% compared to the previous year.

This led to Ping Pong closing its remaining four restaurants and appointing administrators earlier this summer.

At that point all 125 employees were made redundant, with the majority owed arrears of wages, holiday pay and pay in lieu of notice – a bill which today stands at £125,437.

The company also owes £2.82m to secured creditor PPGIL 2 L.L.C-FZ. After surrendering the lease on one site, the administrators gave an initial payment of £100,000, but interest is continuing to accrue.

HMRC is also listed as a secondary preferential creditor after its employees. It is owed £893,225, which administrators believe there will be insufficient funds to pay.

The Ping Pong closure came following a media backlash last year for replacing its service charge with a 15% discretionary ‘brand charge’ ahead of changes to tipping laws.

The chain was founded by restaurateur Kurt Zdesar with the backing of Igor Sagiryan in 2005 and grew to 13 restaurants within four years.

It was famed for offering a selection of more than 40 types of dim sum, including steamed, fried and baked varieties with meat, seafood and vegetarian options. A set lunch menu in 2006 cost £11.

Zdesar left Ping Pong in 2007 and the business later closed several unprofitable sites. Following his departure, Zdesar launched Chotto Matte in 2013.

In recent years, Ping Pong had struggled with Covid debt and rent repayments. It reported trading losses of £1.4m in the year to March 2020 and a loss of £1.86m over the following 12 months before eventually posting a profit of £334,000 in the year to March 2022.

By the end of 2022, Ping Pong had halved its portfolio from its peak to six London restaurants and a central production kitchen and employed 255 people.

The group appointed administrators Begbies Traynor in November 2022 and completed a pre-pack sale of the business to three of its company directors for £3.21m the same day.

A report from Begbies Traynor at the time said the onset of the pandemic had caused “significant disruption” to the business, which had been kept afloat by a £500,000 loan from Sagiryan.