Casual-dining Mexican chain On the Border filed for Chapter 11 bankruptcy on Tuesday, becoming the latest restaurant chain to seek restructuring amid a tough operating environment.
The chain had closed more than a dozen restaurants across the country in recent weeks. As of Wednesday evening, its website listed 66 locations, which was a little over half as many as it had at the end of 2023, according to Technomic data.
The filing in Georgia Northern District bankruptcy court listed On the Border’s assets and liabilities at between $10 million and $50 million.
On the Border is owned by Atlanta-based investment firm Argonne Capital Group, which also operates Applebee’s, IHOP and Wingstop restaurants as well as Planet Fitness and other franchises. It acquired On the Border in 2014 from Golden Gate Capital.
On the Border was founded in 1982 in Dallas. It’s known for its Tex-Mex fare such as fajitas as well as margaritas and guacamole. It was acquired by Chili's owner Brinker International in 1994 and grew quickly in the early 2000s, reaching 166 locations in 2007. It sold to Golden Gate Capital in 2010.
The chain's sales and unit count began to decline starting in 2008, and it was particularly struggling in the years leading up to the pandemic. After a rebound in 2021 and 2022, sales were down about 3% in 2023, the last year for which Technomic data was available. It had 120 locations that year and had not returned to its pre-COVID sales volumes.
On the Border is at least the fourth casual-dining chain to file for bankruptcy over the past year, joining Red Lobster, TGI Fridays and Buca di Beppo. Casual-dining chains have struggled to generate traffic due to inflation and a growing consumer preference for quick-service and fast-casual concepts.
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