Raleigh, N.C. — Kamado Grille in north Raleigh has ceased operation and filed for Chapter 7 bankruptcy.
The restaurant opened in 2015 at 832 Springfield Commons Drive, in the old Lucky 32 location off of Spring Forest Road.
In a filing dated Feb. 21, attorneys for Kamado co-founder Joseph R. Dunn requested that the case be moved from a Chapter 11 bankruptcy protection case to Chapter 7 “in order to in to facilitate an orderly wind down of its (Kamado Grille’s) operations.”
In the motion, attorneys noted that Kamado had closed as it “has been unable to generate sufficient cash flow to pay its ongoing operating expenses.”
Dunn filed for Chapter 11 in December, indicating the restaurant had assets of $50,000 or less, and liabilities of $500,0001 to $1 million.
Under Chapter 7, a business or person’s debts are wiped out. A trustee collects all of nonexempt assets and puts them up for sale. Proceeds are used to pay creditors.
Creditors have until March 17 to respond and request a hearing on the motion.