Panda House, the downtown Hanover Chinese restaurant, will soon close its doors for good after multiple allegations of credit card fraud against restaurant employees have greatly diminished its business.
In the most recent scandal, more than 20 Panda House customers, some of who are Dartmouth students, lost well over $10,000 to a type of credit card fraud called "skimming."
Skimming is a process by which the skimmer, in this case an unknown Panda House employee, runs customer credit cards through a handheld device that electronically captures data stored on the magnetic strip of the card. The skimmer can then use that information to make unauthorized purchases.
After the most recent set of fraud allegations, Panda House's landlords suggested to the restaurant's ownership that it would be best for both parties if Panda House sold its business, according to building co-owner Jim Rubens.
Rubens needed to convince Panda House to sell its business voluntarily since he had no legal grounds to evict Panda House outright, due to the restaurant's consistently on-time rent payments.
"They have always paid rent on time, probably always will, wherever they go," Rubens said.
Rubens, however, did not have trouble convincing Panda House to put its business on the market, he said.
"It was not difficult for them to agree with our proposal to sell the place because business had dropped off," Rubens said.
A restaurant accustomed to lines out the door each night at dinner, Panda House's teeming crowds have declined recently.
Panda House employee Tom Li confirmed that Panda House's popularity is not what it used to be.
"[Business is] steady," he said. "I mean, we're not busy, but steady."
Panda House's current space, Rubens said, is among the spaces in Hanover best equipped to house a successful restaurant business. Rubens cited Panda House's two stainless steel kitchens and its Lebanon Street location as some of its biggest assets.
As a result, many interested parties are currently in negotiations with Panda House in hopes of acquiring the business. Whether the replacement will be another Chinese restaurant, however, remains unclear.
"There will be a new owner, possibly a new type of restaurant, a new name, a new menu, new employees," Rubens said. "The change will be as soon as possible."
Although Panda House has never failed to pay rent, Rubens said that the building's ownership would benefit from a change because they would prefer that the restaurant in Panda House's location be a successful enterprise.
"We want more traffic in the building, we want a restaurant with a great reputation," Rubens said.
A successful restaurant brings more people into the building and makes the other businesses in the building more successful, Rubens said.
Asked why he only requested that Panda House sell its business after the most recent allegations, Rubens said, "That was the straw that broke the camel's back. [The allegations] caused people to be wary about using their credit cards in the place."
This was the third set of credit card allegations against Panda House in the last five years.
