SAO PAULO, August 20, 2013 /PRNewswire/ --
Ping Pong Brasil, established in 2009 as a joint venture between Ping Pong International and entities represented by Mr. Ricardo Rinkevicius, operated two restaurants in Sao Paulo with an investment of more than USD 3.0 million. Mr. Rinkevicius, in addition to owning 25% of Ping Pong Brasil, was Director of the entity and therefore responsible for restaurant construction, management, bank financing and financial administration. Ping Pong International provided support on branding, menu, personnel training & IT.
Despite the initial success of both restaurants, the restaurants experienced a sharp decline in profitability in 2012, resulting in working capital shortages. Ping Pong International decided to consolidate its control over the Brazilian venture, taking administrative and financial control in January 2013 together with the purchase of Mr. Rinkevicius's quotas. Ping Pong International provided additional financing, appointed a new operating director and increased head office involvement.
Despite Ping Pong's efforts over the last 6 months, the scale of the financial deficit accumulated during the prior administration, and worsened by the ANVISA (Brazilian Health Agency) strike, finally led to the closure of the two restaurants in Brazil. Ping Pong Brasil paid a large part of its past-due tax bills and ensured that all employees received their pay and legally-due redundancy payments; fulfilling all financial obligations to those hardest hit by the closures in the local community.
A spokesperson for Ping Pong International states: 'Ping Pong International currently operates profitable restaurants in the UK and USA, and our concept was well received by Brazilian consumers. The closure of these restaurants will not stop the international growth strategy. Ping Pong International is currently working with potential franchising partners to re-establish the concept in South America.'
For further media enquiries please contact Ping Pong International, Group Marketing Manager, Katie Harel - Tel: +44-207-036-8200, Email: Katie@pingpong-group.com
SOURCE Ping Pong International