Another famed Kiwi restaurant has been forced to close its doors amid the ongoing economic downturn.

Sid and Chand Sahrawat are shuttering Ponsonby's KOL, citing challenging trading conditions.

Chand Sahrawat says they're tried a number of solutions set to fix the concept - but they're hoping to take on a new challenge.

"I think there is some other concept out there - we've got some ideas of what we would do with the space...but we want to see if there's a better idea out there than what we have for the space and hopefully mentor someone."

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