The Original Fish Taco, an affiliate of TREW Capital Management Private Credit LLC, was the successful bidder in Rubio’s Restaurants Chapter 11 bankruptcy action and will pay a credit bid of USD 40 million (EUR 37 million) to buy the restaurant chain.
San Diego, California, U.S.A.-based Rubio’s, which filed for bankruptcy on 5 June, reported pre-petition debt of more than USD 72 million (EUR 67 million). The seafood-themed “fresh Mex” chain has been serving sustainable seafood at its restaurants, which now number 86, after the closure of 48 restaurants earlier this year.
TREW was the winning bidder after previously acquiring all senior secured first-lien debt obligations from Rubio’s former lender Golub in March 2024, Restaurant Dive reported.
“The debtors have been negotiating with the purchaser and have reached agreement in substance on the terms of its bid, which has been determined by the debtors to be the successful bid,” Rubio’s said in documents filed in the U.S. Bankruptcy Court for the District of Delaware. “No alternative qualified bids have been received by the debtors, and there is no backup bid.”
A hearing on the sale will take place 5 August.
Rubio’s said negative national restaurant industry trends damaged its profitability. Rubio's previously filed for Chapter 11 bankruptcy in 2020, resulting in it closing all of its Colorado and Florida restaurants.
After filing for bankruptcy for a second time this year, the company said it “has been negatively affected over the past few years by diminishing in-store traffic attributable to work-from-home practices remaining in place and by rising food and utility costs that, combined with significant increases to the minimum wage in California, put pressure on a number of its locations.”
“Despite best efforts to right-size the company, the continued challenging economic conditions have negatively impacted its ability to meet the demands of its debt burden,” Rubio’s Chief Restructuring Officer Nicholas Rubin said. “The company believes the best path forward for Rubio's is through a court-supervised sale process that will position the brand for long-term success to grow and flourish.”
Rubio’s said its remaining 86 locations in California, Arizona, and Nevada will continue to operate under normal conditions during the bankruptcy proceedings.
