The Crouching Lion Inn will be reopening June 28 under new ownership, six months after it closed because of declining business and problems with its sewage system.

The inn, located along the scenic Ka'a'awa coast, will feature an expanded menu with a South American influence when it reopens, said Evaldo Ferreira, a partner in H.F. Hawaii Enterprises Inc. Ferreira, along with partner Alan Huie, purchased the restaurant from Michael Abreu two months ago.

The inn's building was constructed in 1928 as the private residence of contractor George Larsen. It was converted to a restaurant in 1957 and became a regular stop for tour buses.

But increased competition from restaurants in the area led to a drop in patrons in recent years. In late December, Abreu laid off 35 employees and closed the restaurant, saying the eatery would reopen "in a matter of weeks" after renovation work is completed.

A big part of the renovation was replacing an aging cesspool with a septic tank to meet Environmental Protection Agency standards. Ferreira said the septic tank has been installed and the restaurant is ready for business.

The restaurant was known as Michael's Restaurant and Sports Lounge under Abreu's ownership. But Huie and Ferreira have changed the name back to Crouching Lion Inn. Ferreira said he hopes the new menu and renovated restaurant will draw loyal as well as new customers.

"The menu was very weak before," he said. "We're incorporating more items in the menu, more tropical items."