SAN DIEGO (CNS) - Rubio's Coastal Grill, which originated in San Diego, announced Wednesday that it is filing for Chapter 11 bankruptcy, citing rising costs in California.
As part of the bankruptcy announcement, the company said it has closed 48 "underperforming" California locations, including 13 in the San Diego area. Another 86 locations in California, Arizona and Nevada will continue normal operations.
"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 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.
The San Diego County locations that have shut down:
- Chula Vista Eastlake- 1480 Eastlake Pkwy Suite 901, Chula Vista, CA 91915
- El Cajon- 419 Parkway Plaza, El Cajon, CA 92020
- Escondido- 1485 E Valley Pkwy Suite A-6, Escondido, CA 92027
- Kearny Mesa- 9187 Clairemont Mesa Blvd Suite 7, San Diego, CA 92123
- La Jolla UCSD campus- 9500 Gillman Drive, Food Ct, La Jolla, CA 92093
- La Jolla- 8935 Towne Centre Dr., Suite 100, San Diego, CA 92122
- Sorrento Mesa- 9254 Scranton Rd, Ste 105, San Diego, CA 92121
- San Marcos- 1158 W San Marcos Blvd suite a, San Marcos, CA 92078
- Solana Beach- 437 Hwy 101 #117, Solana Beach, CA 92075
- Torrey Highlands- 7835 Highlands Village Pl Suite D101, San Diego, CA 92129
- Vista- 1711 University Drive, Suite 110. Vista, CA 92083
- Naval Base San Diego - 2260 Callagan Hwy Bldg. 3187, San Diego, CA 92136
- Pacific Beach- 910 Grand Avenue, San Diego, CA 92109
According to a company statement, the chain "has been negatively affected over the past few years by diminishing in-store traffic attributable to work-from-home practices remaining in place." The company also cited rising food and utility costs, along with "significant increases to the minimum wage in California, (which) put pressure on a number of its locations."
Nicholas Rubin, Rubio's chief restructuring officer, said, "Rubio's Coastal Grill is one of the legendary fast casual chains with a strong and loyal customer following in its communities. 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."
In October 2020, Rubio's filed for bankruptcy protection, at the time citing the COVID-19 pandemic as one of the reasons for its decision.
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