The brand's sites that traded under Viral Ventures UK have closed down after liquidators from Frost Group were appointed. According to the firm, the Karen’s Diner operator, which is infamous for its staff’s performative rudeness, had been facing “mounting financial pressure” after a creditor presented a winding up petition. More than 75 staff members were employed by the company across the country, which included those who worked at the now-shut Barnet branch.

But a spokesperson for Karen’s Diner in Angel has told Islington Gazette that it is operated by an autonomous company, and has not been impacted by Viral Ventures’ collapse. They added that the restaurant in White Lion Street is “very much open” and “achieving well-deserved acclaim from both customers and trade alike”. After visiting the Angel site , the Islington Gazette found that the restaurant delivers the “bad attitude” it promises, but advised customers not to visit if they had suffered a bad day at work.

Karen’s Diner operates under a franchise, which means individual business owners can run restaurants using the chain's brand. The diner is closed on a Monday but open from 5pm to 10pm the rest of the week. A lunchtime dressing-down is also possible at the weekend, with doors open from 1pm.

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