What Rubio's bankruptcy could mean for restaurant finance for the rest of the year

Less than a week after abruptly closing nearly 50 California locations, Rubio’s has filed for Chapter 11 bankruptcy protection. The company said it is pursuing this action to facilitate the sale of the 41-year-old business, adding that its remaining 86 locations in California, Arizona, and Nevada will continue to operate as is.

The company has cited challenging economic conditions, diminishing in-store traffic driven by sustained work-from-home trends, rising food and utility costs, and “significant increases to the minimum wage in California.” On April 1, California’s minimum wage increased by 25% to $20 an hour.

Rubio’s is seeking court approval to continue operations during the sale process to ensure continued payment of employee wages and benefits. All gift cards and rewards will be honored at the remaining 86 locations.