Rubio's Has Good News For Its Fans

With all the dismal news we've seen on the restaurant front, the last thing we needed to hear about was the possible closure of yet another favorite restaurant. Fortunately for fans of Rubio's Coastal Grill, the company is reporting just the opposite. QSR says Rubio's expected to come out of Chapter 11 bankruptcy a stronger company and that it is expected to wrap up its financial restructuring process by the end of the year.

"We said at the outset that this would be a swift passage through the reorganization process, and it has been – despite the challenges of operating restaurants in today's environment," the company's president and Chief Executive Officer Marc Simon was quoted as saying. "With a significantly improved balance sheet, new long-term financing and a seasoned management team, Rubio's is well-positioned to respond to any COVID-related challenges and thrive as a leader in the industry for years to come."

Rubio's, which operates and franchises 167 restaurants in California, Arizona, and Nevada had filed for Chapter 11 in October. Like so many other restaurant operators at this time, the pandemic had caused Rubio's to close 26 underperforming outlets and to leave the Colorado and Florida markets at the same time. At the time they went into bankruptcy protection, Rubio's had 3,400 people on their payroll, $100 million worth of assets, and $500 million in liabilities (via Reuters).

Rubio's began in 1983 as a walk-up taco stand in Mission Bay, San Diego serving fish tacos that founder Ralph Rubio had fallen in love with while he was surfing in Mexico. That his company, which is now owned by a private equity firm was no longer in any financial danger, must be a reason to celebrate. "Throughout this process, our team never lost sight of the importance of taking care of our guests, serving our delicious food with the exceptional service that our guests have come to expect from their neighborhood Rubio's," the founder said through a press release (via QSR).