Bankrupt fast casual Rubio’s Coastal Grill has a new owner.
TREW Capital Management, founded by former Famous Dave’s CEO Jeff Crivello, will use a $40 million credit bid to acquire the chain’s assets. That means instead of a traditional sale, the private equity firm will use the debt it’s owed as a form of currency to gain control of Rubio’s.
Rubio’s filed for Chapter 11 bankruptcy in June, citing $100 million to $500 million in liabilities and $10 million to $50 million in assets.
The company has faced declining traffic due to the sustained work-from-home trend post-pandemic, rising food and utility costs, and a significant minimum wage increase in California. Chief restructuring officer Nicholas Rubin said challenging economic conditions have hindered Rubio’s ability to manage its debt.
The bankruptcy filing follows the closure of 48 underperforming locations across California, reducing its footprint to 86 units in California, Arizona, and Nevada. In 2022, Rubio’s operated 152 stores, generating $217.3 million in sales, with a negative $7.8 million EBITDA and a net loss of $15.6 million. By 2023, it had 145 restaurants, $218.3 million in sales, a negative $9 million EBITDA, and a net loss of $20 million.
Rubio’s previously filed for bankruptcy in 2020 due to pandemic-related closures and exited markets in Colorado and Florida. At that time, it operated 167 locations with $82.3 million in debt. The company furloughed a significant portion of its workforce and permanently closed over two dozen units.
In response to financial struggles, Rubio’s has undertaken several initiatives, including store refreshes, launching a new mobile app and website, menu development, price adjustments, and staff optimization. Collaborating with Hilco Real Estate since November 2023, Rubio’s has been negotiating landlord concessions. Post-closures, the chain will concentrate on the Southern California and Arizona markets.
Founded in 1983 by Ralph Rubio, the brand evolved from “Rubio’s, Home of the Fish Taco” to “Rubio’s Coastal Grill.” It went public in 1999 and was privatized in 2010 after a $91 million acquisition by Mill Road Capital.
