The fast-moving Mexican food chain Rubio’s Restaurants, based in Carlsbad, filed for bankruptcy on Monday in Delaware.
Rubio confirmed the submission in a statement released on Monday:
“Rubio’s Restaurant’s … announced today that it has reached an agreement on a major financial restructuring with its sponsor, Mill Road Capital, and its lenders, funds managed by Golub Capital, to recapitalize the company. To carry out the restructuring, the company submitted a pre-packaged plan with the approval of its lenders and voluntarily filed petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. District Court for Delaware. “
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The chain has more than 150 locations with more than 3,500 workers in California, Arizona and Nevada. It operates nearly half a dozen restaurants in its hometown of Carlsbad alone and dozens of others around San Diego County.
Rubio’s spokeswoman Anita-Marie Laurie said on Monday that the company wanted to emphasize to diners that “our restaurants are open as usual.”
The company said in Monday’s statement that more than two dozen locations – most of which were in Florida and Colorado – that were closed when the pandemic hit, would be permanently closed. A “small number” of other sites that were still closed due to the pandemic may reopen as restrictions are reduced.
The company’s founder Ralph Rubio maintained a positive tone in a quote attributed to him in Monday’s statement.
“COVID-19 has had a significant impact on Rubios, like most companies, and I am proud of how we have responded to the challenge. Our investments in critical digital technology in 2019, including online ordering, a mobile app, a new loyalty program and Rubio’s delivery, made it possible for us to swing quickly under various state and county restrictions …. This restructuring plan creates the long-term financial stability we need to continue to serve our communities for many years to come. ”
The first Rubio opened its doors in Mission Bay in 1983, according to the company Bio.