Image Credit: Matt Howry, CC By 2.0
(North County Beat) – Carlsbad-based Rubio’s Coastal, a well-known taco chain that filed for bankruptcy protection just two months ago, has secured a new owner. TREW Capital Management, Rubio’s former lender, agreed to purchase the restaurant chain for $40 million.
Jeff Crivello, head of TREW Capital and former CEO of Famous Dave’s, facilitated the acquisition by leveraging part of the outstanding debt owed to TREW. The absence of additional bidders eliminated the need for an auction.
Rubio’s, founded 40 years ago, has significantly scaled down from its peak. The company, which once operated nearly 200 restaurants, now runs just 86 locations after shutting down 48, including 13 in San Diego County, shortly before filing for Chapter 11 bankruptcy.
This sale, pending bankruptcy court approval next week, allows Rubio’s to continue operating its current locations, though the future number of operational restaurants remains uncertain. John Gordon, a San Diego restaurant analyst, noted that customer support in San Diego will be crucial for Rubio’s survival.
Rubio’s previous bankruptcy filing occurred in 2020, largely due to the COVID-19 pandemic, according to then-CEO Marc Simon. The current financial disclosure indicates assets between $10 million and $15 million against liabilities ranging from $100 million to $500 million, with as many as 25,000 creditors.
Gordon expects that Rubio’s will need further financial investment to remain viable. Crivello’s history of acquiring restaurant chains at budget prices hints at potential strategic moves for the chain’s revival.
