Struggling Scottsdale-based Kona Grill files for bankruptcy
May 6, 2019, 7:15 PM | Updated: May 7, 2019, 8:12 am
(Facebook/Kona Grill, Inc.)
(Facebook/Kona Grill, Inc.)
PHOENIX — Scottsdale-based Kona Grill filed for bankruptcy protection last month after shutting the doors at about half of its locations over a two-year period.
Kona Grill filed for Chapter 11 protection in U.S. Bankruptcy Court in Delaware on April 30, according to Wall Street Journal.
A Chapter 11 bankruptcy allows the filer to restructure finances under bankruptcy court protection.
The company is reportedly $74 million in debt, including $33.2 million that is owed to secured lenders KeyBank and Zions Bank.
It also owes $8 million to unsecured trade creditors.
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Kona Grill officials told the Journal that it hopes to find a buyer for the fast-casual dining chain that features sushi and American cuisine.
There are currently about two dozen restaurants, down from 46 in 2017. Most of them are in the U.S., but there are locations in Canada and United Arab Emirates.
Three of the locations are in metro Phoenix. The company closed two Phoenix-area spots earlier this year.
The Associated Press contributed to this report.
