Company behind viral restaurant Karen's Diner collapses

The company behind Karen's Diner, the restaurant that gained internet infamy for its deliberately bad service, has collapsed.

Viral Ventures (Australia) Pty Ltd, which runs both Karen's Diner and Broadway Diner, went into liquidation on May 30, announcing on June 5 that Chris Johnson and Andrew McCabe from Wexted Advisors have been appointed to wind up the company.

Karen's Diner gained online notoriety for what it describes as "great burgers and very bad service", offering customers the unusual experience of being belittled by waitstaff.

READ MORE: Australian inflation is stubbornly high. Some countries don't have that problem

It launched in Australia in October 2021, with a mix of restaurants and pop-up locations opening across the country since then.

On its website, it brags of having more than 1.2 million social media followers and 1.5 billion views on TikTok.

Broadway Diner, on the other hand, is an American-style, 1950s-themed restaurant where staff performed musical numbers for diners. It had locations in both Sydney and Brisbane.

READ MORE: Fabric conditioner recalled over carcinogen

In social media posts on May 30, the day liquidators were appointed, Karen's Diner said some of its pop-ups were closing but didn't say what the future of its stores was.

"Unfortunately, all good things come to an end and Karen can't stay forever," the post read.

"Today marks the closing of some of our Australian pop-up stores.

"If your local pop-up store has closed, there will be a Karen's Diner On Tour coming to your city this September."

Bookings remain available on the chain's website.

It is unclear how many creditors or staff are affected by the company going into liquidation.

9news.com.au has reached out to Karen's Diner and the liquidators for comment.

Sign up here to receive our daily newsletters and breaking news alerts, sent straight to your inbox.