On The Border closes all company-owned US restaurants after bankruptcy
On June 12, 2026, Tex-Mex chain On The Border closed all 60 of its company-owned US locations following a Chapter 11 bankruptcy in March 2025 and acquisition by Pappas Restaurants. A subsequent Chapter 7 liquidation filing on June 19 listed $6.2 million in liabilities. Franchise locations in South Dakota, Florida, Nevada, California, and South Korea remain open. The chain joins other casual-dining struggling brands like Hooters and Red Lobster.
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On the Border files for Chapter 7 bankruptcy after mass closures
On the Border, the Mexican casual-dining chain, filed for Chapter 7 bankruptcy on June 19, 2026, days after closing most of its restaurants. The company listed $752,945 in assets and $6.2 million in liabilities. Its largest creditor is owner Pappas Restaurants, which is owed over $4.7 million. On June 12, the chain abruptly closed its 28 company-owned locations, leaving only five franchised U.S. restaurants and some in South Korea. The filing follows a Chapter 11 bankruptcy in 2025 from which it emerged about a year ago. Founded in 1982 and known for fajitas and tableside guacamole, the chain grew to 166 locations by 2007 but began declining during the Great Recession. It closed 77 locations in 2024 and 2025 before Chapter 11. The Chapter 7 filing will liquidate assets to repay creditors, completing a long decline for the chain.
Yahoo FinanceOn The Border Shuts All Company-Owned Restaurants in the US
Tex-Mex chain On The Border closed all its company-operated restaurants in the United States on June 12, 2026, following a prolonged restructuring process. The chain had filed for Chapter 11 bankruptcy protection in March 2025 and was subsequently acquired by Pappas Restaurants. Since the acquisition, the chain steadily reduced its footprint from 60 outlets to 33 locations before the final closure. The corporate operator, OTB Hospitality, stated the decision was part of a significant transition in restaurant operations, focusing on supporting team members through the closure. Independently run franchise locations in South Dakota, Florida, Nevada, California, and South Korea will remain open. The company expressed gratitude to guests and team members for their support over the years.
Yahoo FinanceOn The Border Shuts All Company-Owned Restaurants in the US
On June 12, 2026, Tex-Mex chain On The Border closed all of its company-operated restaurants across the United States, a move announced via a notice on its website expressing gratitude to guests and team members. The closure follows a prolonged restructuring process that began with a Chapter 11 bankruptcy filing in March 2025 and subsequent acquisition by Pappas Restaurants. The chain, which once had 60 outlets, had already reduced its footprint to 33 locations prior to the shutdown. Operator OTB Hospitality stated the decision was difficult and that the focus is on supporting affected employees, though specifics on support were not provided. Franchise sites, including locations in South Dakota, Florida, Nevada, California, and South Korea, will remain open. The news was originally published by Verdict Food Service.
Yahoo FinanceNational Tex-Mex restaurant chain On The Border closes all 60 company-owned locations
On The Border Mexican Grill & Cantina, a national Tex-Mex restaurant chain, has closed all 60 of its company-owned locations across the United States as of June 12, 2026. The chain had previously filed for Chapter 11 bankruptcy in March 2025 and was acquired by Houston-based Pappas Restaurants in May 2025. Despite a menu overhaul and operational improvements under new ownership, the company announced the difficult decision to close all company-operated restaurants. Franchise locations in South Dakota, Florida, Nevada, California, and South Korea will remain open as they operate independently. The closures affected restaurants in Oklahoma, Michigan, Pennsylvania, Texas, and other states. On The Border joins several other major casual-dining chains, including Hooters, Red Lobster, and TGI Fridays, that have faced financial difficulties in recent years.
Yahoo FinanceNational Tex-Mex restaurant chain On The Border closes all 60 company-owned locations
On The Border Mexican Grill & Cantina, a national Tex-Mex restaurant chain, has closed all 60 of its company-owned locations across the United States as of June 12, 2026. The chain had previously filed for Chapter 11 bankruptcy in March 2025 and was acquired by Houston-based Pappas Restaurants in May 2025. Despite a menu overhaul and operational improvements under new ownership, the company announced the difficult decision to close company-operated restaurants. Franchise locations in South Dakota, Florida, Nevada, California, and South Korea remain open as independently operated businesses. The closures affected restaurants in Oklahoma City, Tulsa, Grand Rapids (Michigan), Bucks County (Pennsylvania), and Wichita Falls (Texas). The chain joins other major casual-dining chains like Hooters, Red Lobster, and TGI Fridays that have faced financial difficulties in recent years.
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