Rubio’s Restaurants Inc. has filed for Chapter 11 bankruptcy protection with a prepackaged restructuring plan, the company said Monday.
The Carlsbad, Calif.-based limited-service Mexican brand said it had reached agreement on a comprehensive financial restructuring with its sponsor, Mill Road Capital L.P., and its lenders, funds managed by Golub Capital, to recapitalize the company.
Rubio’s, which filed its plan in the U.S. Bankruptcy Court for the District of Delaware, said it would obtain debtor-in-possession financing from Golub Capital and an additional investment from Mill Road to support operations at its restaurants in California, Arizona and Nevada.
Rubio’s confirmed in June that it had closed a dozen restaurants become of the COVID-19 pandemic’s inpact.
“Rubio’s entered the year in a strong financial position, which has helped the company remain flexible in navigating the unprecedented impact of the pandemic,” said Marc Simon, Rubio’s CEO and president, in a statement.
“The agreement with our sponsor and lenders will position the company to thrive in this constantly evolving market,” Simon added. “This plan will strengthen our finances and allow us to continue to serve our loyal guests and drive our business forward.”
Ralph Rubio, co-founder of the brand in 1983, said, “This restructuring plan creates the long-term financial stability we need to continue to serve our communities for years to come.”
The company said daily operations at more than 150 Rubio’s restaurants in California, Arizona and Nevada will continue.
As a result of the coronavirus impact, the company permanently closed 26 locations — primarily in Colorado and Florida — that had been temporarily closed when the pandemic hit. In addition, a small number of stores remain temporarily closed and may reopen as state and county restrictions change, the company said.
In its latest fiscal year, ended December 2019, Rubio’s had 197 restaurants, compared with 204 in the preceding year, according to Nation’s Restaurant News’ Top 200 census. The company generated sales of $230.6 million in fiscal 2019, down from $232.7 million from the preceding year.
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