Rubio’s Coastal Grill files for bankruptcy

Rubio’s Coastal Grill, a San Diego-based chain with a history of over 40 years and nearly 200 restaurants, has filed for Chapter 11 bankruptcy.

Driving the news: Despite the bankruptcy filing, the existing 86 Rubio’s locations will continue to operate. This is the second bankruptcy filing for Rubio’s in less than four years. The recent closure of 48 restaurants, including 13 in San Diego County, preceded the bankruptcy filing.

• The company cites challenging economic conditions, particularly in California, as a reason for its declining performance.

• Rubio’s plans to sell the business through a court-supervised process and expects the sale to be completed within 75 days.

• The co-founder, Ralph Rubio, will continue with the company. The chain had as many as 170 locations before its decline, and the current filing marks a fraction of what it once was.

• A bankruptcy filing was predicted by restaurant analyst John Gordon prior to the announcement.