On The Border Tex-Mex Chain Files for Chapter 11 Bankruptcy After Closing Dozens of Locations

The restaurant chain plans to restructure and sell its assets while keeping remaining locations operational.

On The Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy in Georgia, citing financial struggles from inflation, labor costs, and shifting consumer habits.
The company has closed at least 40 underperforming locations across 24 states and plans to reject leases on additional closed sites.
Despite the bankruptcy filing, 60 company-operated locations in 18 U.S. states and franchise locations in the U.S. and South Korea will remain open during the restructuring process.
The chain has secured $10 million in funding to maintain operations and is pursuing a sale of its assets to an affiliate company.
On The Border joins other casual dining chains like Red Lobster and TGI Fridays that have faced similar challenges in recent years.