Nearly three months after filing for Chapter 11 bankruptcy protection, Kona Grill announced the closing of its only restaurant in Puerto Rico, at The Mall of San Juan. It opened in 2015.
The eatery confirmed the decision in a notice sent via email saying “we want to thank all our guests for their past patronage and hope you’ll visit Kona Grill again when you are near our other locations.”
In late April, Arizona-based Kona Grill Inc. and its subsidiaries — including Kona Grill Puerto Rico Inc. — have filed a Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware, to facilitate its previously announced sale process, as this media outlet reported.
The bankruptcy process called for a sale and omnibus hearing on July 25, in which the court authorized the sale of most of Kona Grill Inc.’s assets.
In documents submitted to the U.S. Bankruptcy Court in Delaware, Kona Grill Puerto Rico Inc. generated some $2.6 million in revenue in 2017, about $2.3 million in 2018, and $803,540 from Jan. 1, 2019 through June 18, 2019.
Although the local operation apparently held steady, its parent company posted $32 million losses for 2018. At the time of the bankruptcy filing, Kona Grill said it would continue to operate its existing 27 restaurants — a number that is down to 26 after the local closing.
Kona Grill’s equipment will be sold via auction by Auction Nation next week, according to a notice.