This Fast Casual Mexican Chain Is Going Bankrupt
California-based Mexican chain Rubio's Coastal Grill has filed for bankruptcy. The company will undergo a chapter 11 restructuring with a prepackaged plan, which it has agreed upon with its sponsor and lenders, according to Nation's Restaurant News (NRN).
"The agreement with our sponsor and lenders will position the company to thrive in this constantly evolving market," Marc Simon, Rubio's CEO and president, told the outlet in a statement. "This plan will strengthen our finances and allow us to continue to serve our loyal guests and drive our business forward." (Related: 9 Restaurant Chains That Closed Hundreds of Locations This Summer.)
The regional chain operates more than 150 locations in Arizona, California, and Nevada. Operations at these locations will continue through bankruptcy proceedings, according to NRN. Rubio's was forced to permanently close 26 restaurants earlier this year, which included all of its locations in Florida and Colorado. In total, the chain has shuttered nearly 50 locations since the last quarter of 2019.
Rubio's, which describes its menu as "Fresh Mex" with a focus on fish tacos, quickly pivoted to off-premise dining when government mandates shut down locations in March. While most of its locations have reopened, a small number remain closed pending changes in state and county restrictions.
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