Water Front niche proves elusive

By Andrew Gomes
Advertiser Staff Writer

Water Front Cafe & Cabaret in Aloha Tower Marketplace has filed for Chapter 11 bankruptcy protection. The establishment has undergone various incarnations in its attempt to find its market, including operating as a nightclub. Gregory Yamamoto • The Honolulu Advertiser

Last week, the establishment along Pier 8 makai of Gordon Biersch Brewery Restaurant filed for bankruptcy protection in hopes of reorganizing its finances, management and concept.

Water Front, through affiliate 1129 LLC, filed the Chapter 11 petition to block an eviction effort after repeatedly falling behind on rent since late last year.

"It's a tough business," said Water Front attorney Grant Kidani. "They're trying to find their market. It's very elusive."

The business, which now serves lunch during the day and becomes a nightclub and bar at night — staying open until 4 a.m. on Fridays and Saturdays — listed estimated assets and debts in the range of $1 million to $10 million each.

The largest unsecured creditor is AAR Securities Partner, a partnership headed by Unity House leader and longtime local union official Tony Rutledge. AAR Securities is owed $980,000 for a loan made to Water Front.

AAR in January filed a lawsuit against Water Front officials regarding a contract dispute, though a copy of the suit was not immediately available. Neither an AAR attorney nor Rutledge could be reached.

The state Labor Department has a $300,000 claim against Water Front relating to fines for temporarily not having workers' compensation insurance, which Kidani said the company had a hard time obtaining at a reasonable cost.

Other creditors include the state Department of Taxation, marketplace owner Aloha Tower LP and some suppliers. The total amount of claims from creditors is about $1.5 million.

Kidani said the owners of Water Front, led by Rudy Tam, have invested $1.5 million in the establishment and believe that a change in management and focus on nightclub entertainment can save the company.

"They just don't want to walk away," he said. "They do plan to put together a new business plan for that location."

Water Front originally was planned in early 2000 as Pier 8 Crab House, a fishmonger-style restaurant and themed nightclub reminiscent of Bobby McGee's.

After construction and permitting delays, the business opened about 18 months ago in a space formerly occupied by Buffalo Bud's Bar & Grill, Sloppy Joe's restaurant and Fat Tuesday bar.