Kona Grill, amidst several financial and leadership issues, has filed for Chapter 11 bankruptcy protection. This was filed at the United States Bankruptcy Court for the Delaware District, where Kona Grill cited assets of $53.6 million and debts of $74 million (all USD).
On top of the financial worries, Kona Grill has appointed its sixth CEO in nine months, welcoming Jonathan Tibus from Alvarez & Marsal North America LLC to the position.
As per the filing, Kona Grill also had to close 15 more restaurants, bringing their size down to just 27 units. In 2012, Kona Grill had 23 stores but had managed to double that by 2017. In mid-April Kona Grill warned that if negotiations with buyers didn’t go as planned, or if there was no strategic way around the problems, that they might be forced to file for bankruptcy.