Rubio's Coastal Grill, a popular restaurant chain known for its delicious fish tacos, has taken a hit recently with the closure of nearly 50 California locations and subsequent Chapter 11 bankruptcy filing. The closures, initially attributed to a rise in the minimum wage for fast-food workers in the state, now raise questions about the financial stability of the chain.

The decision to close 48 California locations was presented by Rubio's as a strategic move to navigate the changing business climate caused by the minimum wage increase. However, shortly after the closures, the company filed for Chapter 11 bankruptcy protection in the District of Delaware Bankruptcy Court. The filing revealed that Rubio's has assets ranging from $10 million to $50 million, along with a debt of $50 million to $100 million.

It is worth noting that this is not the first time Rubio's Coastal Grill has faced financial difficulties. Last year, the company also filed for Chapter 11 bankruptcy, citing the impact of the COVID-19 pandemic on its operations. The bankruptcy shook the business landscape, and Rubio's was eventually acquired by its lender, The Original Fish Taco LLC, for $40 million.

The Original Fish Taco LLC, an affiliate of TREW Capital Management restaurant investment firm, has taken on a significant portion of Rubio's debt. TREW, led by former Famous Dave's CEO Jeff Crivello, specializes in lending money to struggling restaurants and acquires them if they default on their loans. With the recent bid to acquire Rubio's, TREW aims to expand its portfolio of restaurant brands, adding to its existing arrangement with BurgerFi International, Inc. and Anthony's Coal Fired Pizza & Wings.

The current bid from TREW to acquire Rubio's must be approved by the bankruptcy court. However, it is important to note that the bid does not include eight Rubio's locations in Nevada. The company is reportedly considering a separate bid for these restaurants.

Rubio's Coastal Grill, established as a taco stand in San Diego in 1983, has grown over the years, serving millions of fish tacos and becoming a beloved institution among food lovers. Despite the recent challenges and closures, the company remains optimistic about its future and continues to emphasize its commitment to fresh, delicious Baja-inspired cuisine that celebrates its Mexican and coastal roots.

As the bankruptcy proceedings unfold, industry experts and loyal customers will closely watch the fate of Rubio's Coastal Grill, eager to see if a successful reorganization can secure the chain's long-term success.