Rubio’s Coastal Grill, a popular fast casual chain based in San Diego, has recently filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. This decision comes after the closure of 48 locations across California earlier this week and is aimed at facilitating the sale of the business. Despite having 86 locations in California, Arizona and Nevada that will continue to operate normally, Rubio’s has faced challenges such as declining foot traffic due to ongoing work-from-home practices and increasing costs for food and utilities. These factors have put pressure on several locations along with significant increases in minimum wage laws in California.
According to Nicholas Rubin, chief restructuring officer at Rubio’s Coastal Grill, despite their efforts to adjust their operations accordingly, they have been unable to meet their debt obligations due to continued economic difficulties. As a result, they believe that undergoing a court-supervised sale process is necessary for long-term success and growth.
The company plans on entering into an agreement with its existing lender who will form an entity specifically designed for purchasing Rubio’s as a going concern through Hilco Corporate Finance acting as bid conductors during this process.
This news marks yet another example of how businesses are adapting during these challenging times while also positioning themselves for future success without mentioning any specific brands or companies involved.
