Ping Pong experienced 25% drop in revenues ahead of administration: The four-strong Ping Pong restaurant business, which ceased trading earlier this summer, fell into administration off the back of seeing revenues decline by up to 25%, drawn out disputes with landlords and an increase in annual costs of circa £500,000, Propel has learned. Propel revealed in June that AJT Dimsum, the parent company of the Ping Pong, was set for a restructure after filing a notice of intention to appoint an administrator. Ping Pong – which operated sites in Soho, Southbank, St Christopher’s Place and Bow Bells House – had lined up Begbies Traynor to oversee the process. An update from the administrators stated: “Despite the company completing the assignment of the Great Marlborough Street restaurant lease and agreeing terms for a new lease with the landlord of the Bread Street site, the landlords of the Southbank Centre and James Street restaurants continued to withhold consent to assignment, leading to drawn out disputes involving legal representatives and associated costs. The uncertainty surrounding these key trading locations, coupled with the requirement to meet ongoing occupancy costs while trading performance was under pressure, placed additional strain on the company’s cash flow and contributed to financial difficulties as 2024 progressed. Notwithstanding a strong Christmas trading period in 2024, 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. Broader market risks, including volatile energy prices due to the war in Ukraine, ongoing shipping delays and port congestion affecting imported products, and continued industrial action in the transport sector, compounded trading difficulties. While trade creditors were maintained broadly in line with agreed terms, the company’s principal financial pressure related to meeting HMRC liabilities. Time to Pay arrangements were entered into for PAYE/NIC and VAT, with some satisfied in full; however, cash flow constraints persisted. Cost reduction measures, including head office restructuring and targeted marketing campaigns, were insufficient to restore financial stability. Although the company continued to enjoy the support of its secured creditor whilst proactive engagement with HMRC continued in respect of payment arrears, given the deteriorating position, the directors initially sought professional advice from Begbies Traynor in spring 2025. By the summer of 2025, it was clear from a review of available financial information that the company’s performance had not improved and was projected to worsen given the market conditions, and therefore that it would be unable to trade out of its current position. It was also clear that the company would be unable to make contributions towards historic liabilities from trading revenues without the introduction of new third-party funding, which was not a realistic prospect, and therefore, that rescuing the company via Company Voluntary Arrangement was not a viable option. Despite the instruction of a professional property agency to assist in identifying new occupants for the company’s sites, and potential interest in certain sites being shown during mid-2025, agreements did not materialise, and a board meeting was held on 4 June 2025 at which it was resolved that the company should be placed into administration.”