Rubio’s Coastal Grill, which filed for bankruptcy in June, has found a new owner, allowing a handful of locations to continue operating.
Earlier this summer, the Carlsbad-based fast-casual chain filed for Chapter 11 bankruptcy for the second time in less than four years, days after abruptly closing 48 of its locations, 13 of which were in San Diego. Now, the company is seeing some relief, as its lender, TREW Capital Management, has agreed to purchase the chain for $40 million, according to the San Diego Union-Tribune. Rubios, a fraction of what it once was with nearly 200 locations, now only has less than 100, with at least a dozen in San Diego.
While the bankruptcy court must still approve the sale next week, the development allows the restaurant to operate for now. The firm used a portion of its outstanding debt to acquire Rubio’s, and because there were no other bidders, a planned auction was no longer necessary. It’s unclear how many locations will stay open if the sale is approved, but Rubio’s, once again, refuses to go down without a fight. The last time the company had to file for bankruptcy was in 2020. At the time, then-Chief Executive Marc Simon said the COVID-19 pandemic essentially triggered the filing. TREW Capital Management, led by Jeff Crivello, the former CEO of Famous Dave’s, will have the opportunity to save the beloved San Diego brand still found throughout Southern California.
“Rubio’s Coastal Grill is one of the legendary fast-casual chains with a strong and loyal customer following in its communities,” Nicholas Rubin, chief restructuring officer of Rubio’s Coastal Grill, said in a statement when the company filed for bankruptcy. “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.”
