Kona Grill Inc. has filed for bankruptcy, saying a stock buyback and the decision to double its number of restaurants just as customer traffic was starting to fall have hurt its liquidity, the WSJ Pro Bankruptcy reported. The Scottsdale, Ariz.-based company, which went public in 2005 and was delisted last week by Nasdaq, filed for chapter 11 protection on Tuesday in U.S. Bankruptcy Court in Wilmington, Del. The company said that it hopes to find a buyer for what has shrunk to a chain of about two dozen restaurants featuring sushi and American cuisine. Its $74 million in total debt includes $33.2 million owed to secured lenders KeyBank and Zions Bank. They are providing financing to help the business get through bankruptcy. Kona also owes $8 million to unsecured trade creditors.
