Rubio’s Closing news 13 locations in San Diego after the Chapter 11 bankruptcy files. Rubio’s Coastal Grill, which began in San Diego more than 40 years ago and once boasted close to 200 restaurants, announced Wednesday it is filing for bankruptcy protection with the goal of selling the business.
In a news release of Closing news issued by the company’s public relations firm, Rubio’s said its existing 86 restaurants will remain operating while the Chapter 11 bankruptcy process proceeds.
“Like the restaurant industry overall, Rubio’s has been negatively affected over the past few years by diminishing in-store traffic attributable to work-from-home practices remaining in place, and by rising food and utility costs that, combined with significant increases to the minimum wage in California, put pressure on a number of its locations,” Rubio’s said in a release.
Rubio’s will be entering a court-supervised sale process which they expect will be completed within 75 days. Rubio’s is seeking court approval to continue operations during the sale process.
Co-founder Ralph Rubio will continue with the company and will provide “his usual inspiration and energy going forward,” the company said.
Closing news
Rubio’s said that daily operations at its remaining 86 Rubio’s restaurants in California, Arizona and Nevada will continue with business as usual.
On June 1, Rubio’s closed 48 “underperforming” locations in California which included 13 in San Diego, 24 in Los Angeles and 11 in northern California.
Among the 30 largest creditors with no secured claims is its lender, TREW Capital Management with an unsecured claim of nearly $28 million. Also on the list are the California Department of Tax and Fee Administration, San Diego Gas & Electric, Southern California Edison and the San Diego County Treasurer-Tax Collector, with more than $74,000 owed.
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