Rubio’s Coastal Grill, which originated in San Diego and has locations across the Southland, announced Wednesday 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 one on Second Street in Belmont Shore and 23 others in the Los Angeles 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.”
Support facts not fear
News happens fast. In the midst of crime, disasters and other breaking news, the Long Beach Post has reporters and photographers who run to the scene to bring you reliable information. If you value this vital community resource, support it with a tax-deductible donation.
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.
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.”