- Prepackaged plan demonstrates continued commitment of sponsor and lenders, which are each increasing their investment in the Company
- Rubio’s will continue to operate business-as-usual
- Company expects to complete the restructuring by year-end
Rubio’s Restaurant’s, Inc., a fast casual restaurant chain specializing in coastal Mexican food, best known for its award-winning Original Fish Taco, announced today that it has reached agreement on a comprehensive financial restructuring with its sponsor, Mill Road Capital, and its lenders, funds managed by Golub Capital, to recapitalize the Company. To implement the restructuring, the Company filed a prepackaged plan with the acceptance of its lenders, and voluntarily filed petitions for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The restructuring contemplates Rubio’s obtaining debtor-in-possession (DIP) financing from Golub Capital and an additional investment from Mill Road Capital. The bankruptcy process provides the Company with a consensual reduction of indebtedness, increased access to capital and an opportunity to optimize its operating footprint. As a result, Rubio’s will emerge with enhanced resources to support the ongoing operations of its restaurants in California, Arizona and Nevada. As the plan already has the full support of its sponsor and lenders, the Company expects to complete its restructuring by the end of the year.
“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, President and CEO of Rubio’s. “The agreement with our sponsor and lenders will position the Company to thrive in this constantly evolving market. This plan will strengthen our finances and allow us to continue to serve our loyal guests and drive our business forward.”
Rubio’s Co-Founder Ralph Rubio said: “COVID-19 has had a significant impact on Rubio’s, like most businesses, and I’m proud of how we have responded to the challenge. Our investments in critical digital technologies in 2019, including online ordering, a mobile app, a new loyalty program and Rubio’s delivery, allowed us to pivot swiftly under varying state and county restrictions. We quickly launched family meal kits and shifted to takeout, curbside pickup and free delivery operations, allowing our guests to enjoy our delicious food when and where they want it. This restructuring plan creates the long-term financial stability we need to continue to serve our communities for years to come.”
Daily operations at more than 150 Rubio’s restaurants in California, Arizona and Nevada will continue with business as usual. Guests can enjoy the same fresh, delicious, coastal-inspired food they have come to expect from Rubio’s Coastal Grill for years to come.
As a result of this year’s unforeseeable business circumstances, the Company permanently closed 26 locations – primarily in Colorado and Florida – that had been temporarily closed when the pandemic first hit. In addition, a small number of stores remain temporarily closed and may reopen as state and county restrictions change.
Court filings and other documents related to the restructuring are available on a separate website administered by the Company’s claims agent, Stretto at https://cases.stretto.com/Rubios.
Ropes & Gray LLP, Young Conaway Stargatt & Taylor LLP, Gower Advisors, B. Riley Financial and Mackinac Partners serve as legal and financial advisors to the Company.
Rubio’s first opened in 1983 in the San Diego neighborhood of Mission Bay. Continuing a tradition of adventurous flavors and healthful options, Rubio’s uses responsibly sourced seafood and continues to expand its menu with innovative recipes ranging from seafood tacos and burritos to California Bowls and crisp, fresh salads. In addition, Rubio’s offers all-natural chicken, raised without antibiotics, and all-natural USDA Choice steak, “no fried” pinto beans, handmade guacamole, a variety of proprietary salsas, and craft beer and hard seltzer beverage options. The award-winning restaurant regularly receives accolades for its famous Original Fish Taco. It was also recently ranked as one of Fast Casual’s “Top 50 Movers and Shakers” as well as one of the top five most loved fast casual chains ranked by Foodable Labs and Digital CoCo. Rubio’s is headquartered in Carlsbad, Calif., has over 3600 employees and currently operates over 150 restaurants in California, Arizona and Nevada. For more information, visit www.rubios.com.