Mexican chain collapses into Chapter 7 liquidation

Sometimes decease for a concern comes successful stages. That's frustrating for customers and staff, who person to acquisition the nonaccomplishment aggregate times.

For On the Border, the chain's decease march has been ongoing since 2024, erstwhile it unexpectedly closed a fistful of locations. That spiraled into a Chapter 11 filing, which saw the size of the marque shrink dramatically.

When On the Border filed for Chapter 11 bankruptcy connected March 5, the institution instantly closed astir 80 locations. That's astir two-thirds of its stores, according to the Chapter 11 filing successful U.S. Bankruptcy Court for the Northern District of Georgia.

That bankruptcy filing could person led to a implicit shutdown, but Pappas Restaurant Group stepped in, buying the marque successful May. For little than 2 months, that gave fans of the brand, and its employees, anticipation arsenic the caller proprietor pledged to put successful On the Border.

"Under Pappas ownership, On The Border has already undergone a sweeping paper overhaul rooted successful the aforesaid culinary standards that person defined the Pappas sanction crossed Texas for decades. The squad has enhanced nutrient quality, strengthened operations and elevated the wide impermanent experience," the caller proprietor shared successful a property release.

That concern ended abruptly connected June 11 erstwhile each company-owned On the Border locations closed unexpectedly. Now, the concatenation has formally filed for Chapter 7 bankruptcy, according to documents filed connected PacerMonitor connected June 19.

Pappas Restaurants gives up connected On the Border

OTB Hospitality, the operating institution of On The Border Mexican Grill & Cantina, has voluntarily filed for liquidation nether Chapter 7 of the United States Bankruptcy Code connected June 19 aft closing each company-owned locations earlier this month, the institution shared successful a June 19 property release.

OTB Hospitality is simply a abstracted ineligible entity wholly owned by Pappas Restaurants, and this filing applies lone to OTB Hospitality, Pappas Restaurants is not portion of the filing and continues to run with fiscal stableness and a continued absorption connected its halfway brands.

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"This was an incredibly hard decision. Our teams worked hard implicit the past twelvemonth to stabilize the business, but it became wide that OTB would necessitate important ongoing concern that would propulsion absorption and resources distant from the halfway operations that specify who we are," said Chris Pappas, spokesperson for OTB Hospitality.