In the latest chapter of the Kona Grill saga, Williston Holding Co., the company headed by Marcus Jundt, a former CEO of Kona Grill Inc., has filed a $20.3 million bankruptcy court bid for the grill-sushi chain.
Court documents filed last week indicate $16.5 million of sale proceeds will go to Kona Grill’s lender, KeyBank.
The company filed for Chapter 11 bankruptcy protection on April 30 in United States Bankruptcy Court for the Delaware District, citing assets of $53.6 million and debts of $74 million.
The Scottsdale, Ariz.-based casual-dining chain had shuttered several units this year, and court documents noted 27 remaining units, down from about 45 units in last August. Local press in Columbus, Ohio, noted an additional unit closure.
Kona Grill has seen a string of chief executives over the past year. In May, the company named Jonathan Tibus CEO, the sixth in nine months. Jundt resigned in March.
For fiscal 2018 ended Dec. 31, Kona said its loss widened to $32 million, or $2.62 a share, from a loss of $23.4 million, or $2.32 a share, in fiscal 2017. Revenues for the year declined 12.4% to $156.9 million in 2018, compared with $179.1 million in 2017.
Williston Holding, which is based in Houston, operates more than 50 locations of 10 brands, including Casa Ole, Monterey’s Little Mexico, Tortuga Mexican Kitchen and Williston Brewing Co.
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Update September 3, 2019: This article has been corrected to reflect that Williston Holding Co filed a bid to aquire Kona Grill, but the bankruptcy court did not approve the sale.