SAN DIEGO — Rubio's Coastal Grill has filed for Chapter 11 bankruptcy. The announcement came just days after the Carlsbad-based chain closed 13 locations in the San Diego area as of Friday, May 31.
In a press release issued Wednesday, June 5, the Company said it is taking this action to facilitate the sale of the business.
“Rubio’s Coastal Grill is one of the legendary fast casual chains with a strong and loyal customer following in its communities,” said Nicholas Rubin, Chief Restructuring Officer of Rubio’s Coastal Grill. “Despite the Company’s best efforts to right-size the company, the continued challenging economic conditions have negatively impacted its ability to meet the demands of its debt burden. The Company believes the best path forward for Rubio’s is through a court-supervised sale process that will position the brand for long-term success to grow and flourish.”
The restaurant chain’s in-store business was negatively impacted by remote working, the rising cost of food and utilities and increases to California's minimum wage, according to the company’s statement.
Rubio's said it is entering into a stalking horse purchase agreement to sell the business to an entity formed and controlled by its existing lender. The sale transaction is expected to be completed within 75 days.
“Making the decision to close a store is never an easy one,” the Company said in a statement. “While painful, the store closures are a necessary step in our strategic long-term plan to position Rubio’s for success for years to come. The closings were brought about by the rising cost of doing business in California.”
Rubio's Coastal Grill still has 86 locations open in California, Arizona and Nevada.
Here is a list of the San Diego locations that have closed:
- 1480 Eastlake Pkwy Suite 901, Chula Vista, CA 91915
- 419 Parkway Plaza, El Cajon, CA 92020
- 1485 E Valley Pkwy Suite A-6, Escondido, CA 92027
- 9187 Clairemont Mesa Blvd Suite 7, San Diego, CA 92123
- 910 Grand Avenue, San Diego, CA 92109
- 8935 Towne Centre Dr., Suite 100, San Diego, CA 92122
- 9254 Scranton Rd, Ste 105, San Diego, CA 92121
- 2260 Callagan Hwy Bldg. 3187, San Diego, CA 92136
- 7835 Highlands Village Pl Suite D101, San Diego, CA 92129
- 1711 University Drive, Suite 110. Vista, CA 92083
- 9500 Gillman Drive, Food Ct, La Jolla, CA 92093
- 1158 W San Marcos Blvd Suite A, San Marcos, CA 92078
- 437 Hwy 101 #117, Solana Beach, CA 92075
The chain, known for its fish tacos, started in Mission Bay in 1983. The company filed for Chapter 11 bankruptcy in 2020, noting the impact of COVID-19 on its business.
Watch Related: Rubio's closes nearly 50 California locations (Jun 1, 2024)