Scottsdale’s Kona Grill chain sale for $25M approved in bankruptcy court
Sep 27, 2019, 9:15 AM | Updated: 8:25 pm
(Facebook Photo)
(Facebook Photo)
PHOENIX – A federal bankruptcy court has approved the sale of Scottsdale-based Kona Grill for $25 million to a steakhouse chain, according to a report.
The Wall Street Journal reported the new owners planned to keep the chain’s remaining 24 restaurants in 16 states open. There are two left in the Valley – Scottsdale and Gilbert.
A judge in Wilmington, Delaware, approved the sale Tuesday. One Group Hospitality will pay cash and assume $11 million in Kona’s liabilities.
Kona filed for bankruptcy in late April, listing at least $74 million of debt.
The buyers, who run STK Steakhouses, had agreed to the sale price in early September.
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“Kona Grill is an excellent brand that has maintained a strong position in the remaining 24 restaurants,” Emanuel Hilario, president of One Group, said in a statement at the time of that announcement.
Hilario went on to say the remaining restaurants “reflected a strong base of high-performing restaurants in attractive markets.”
A previous deal for the sushi chain, led by former CEO Marcus Jundt, fell through. The court had OK’d a sale for $20.3 million in July, just before the Scottsdale Quarter restaurant was shut down.
Before that closure, the site in Chandler had gone dark in April.
