On the Border Mexican Grill & Cantina recently filed for Chapter 11 bankruptcy, leading to the closure of over 70 locations nationwide. The company is seeking court approval to terminate its leases throughout the United States. The bankruptcy filing was prompted by challenging economic conditions, labor shortages, poor restaurant performance, and actions taken by creditors. OTB Holdings Chief Restructuring Officer Jonathan Tibus mentioned that macroeconomic factors have significantly impacted the company, particularly in the casual dining sector where consumer preferences between dining out and staying in play a crucial role.
At the time of the bankruptcy filing, On the Border operated 60 company-owned restaurants, but records indicate that more than 70 locations have already been closed. The company has listed several locations in court documents where it aims to unload its leases. For instance, a Phoenix location was shut down in late February as reported by local news outlet ABC15.
On the Border, originally known as ‘On The Border South Texas Café,’ was established in 1982 with a vision to offer bold border-style cuisine to customers. Following its inception, Brinker International acquired the company within 12 years and introduced the first franchised outlet. The restaurant expanded rapidly, reaching over 100 locations across the U.S. by 2001 and even venturing into international markets like South Korea in 2007. In 2010, the company and 160 restaurants were sold to Golden Gate Capital, which later sold it to Argonne Capital Group in 2014 according to court records. The company had around 2,800 employees at the time of the bankruptcy filing.
For more information on the closures of On the Border restaurants, refer to the list provided in the court filings. If you have any questions, feel free to contact Fernando Cervantes Jr., a trending news reporter at USA TODAY, via email at fernando.cervantes@gannett.com or follow him on Twitter @fern_cerv_.
