Kona Grill CEO steps down amid stockholder pressure

Kona Grill Inc. Chairman and CEO Marcus Jundt stepped down Friday amid pressure from stockholders at the company???s April 30 meeting.

Jundt announced his resignation after shareholders of the Scottsdale-based chain (Nasdaq:KONA) expressed concern about the direction of the sushi bar and restaurant business. He has been CEO since July 2006.

???Although I???m very disappointed by the lack of confidence in my continued leadership expressed by our stockholders in the ???withhold authority??? votes I received at the company???s 2009 annual meeting, I appreciate that a substantial majority of the company???s public owners have spoken their will and, therefore, it is in the company???s best interest for me to step aside at this time,??? Jundt said in a statement.

Content Continues Below

???I???ve been involved with the company since its inception and I always will believe strongly in the Kona Grill concept and brand,??? he said. ???I have only the best interests of our stockholders in mind and I do not want to impede, in any way, the company???s future progress and success. If our stockholders believe it is time for a new steward of the company, then I must respect their views and decision.???

Kona reported a first-quarter loss of $1.1 million, or 17 cents per share, compared to a loss of $700,000, or 13 cents, for the same period in 2008.

Kona Grill has 22 locations nationwide including sites at Scottsdale Fashion Square and Chandler Fashion Square.

Kona COO Mark Bartholomay is taking over as interim president and CEO until a permanent replacement for Jundt is hired, the company said.

???On behalf of Kona Grill and the company???s board of directors, we respect Marcus??? decision and want to thank him for his years of dedicated service and his contribution to the growth of the company???s business. His energy and his enthusiasm for the Kona concept were significant factors in the development of the company. We certainly wish Marcus every success in the future,??? said Mark Zesbaugh, chairman of Kona???s audit committee in statement.