With great sadness, fans of the On The Border Mexican Grill & Cantina restaurant chain, specialized in tex-mex food, have received the news of its recent decision to close dozens of locations. The company has declared bankruptcy and will be closing the shutters on several establishments in the United States, as reported by the specialized site The Street, which reports that it filed on March 4 before the Bankruptcy Court for the Northern District of Georgia.
According to information from The Street, the company attributed its financial crisis to various factors, including liquidity issues, inflation, and increased operating costs. In this context, On The Border would be willing to sell its assets to a lender affiliated with Pappas Restaurants.
According to Jonathan Tibus, the company's restructuring director, the situation worsened when the company began delaying payments to suppliers and landlords. As he told USA Today: "On The Border has been affected in recent years by macroeconomic factors that have negatively impacted the company. Casual dining restaurants are severely affected by consumer sensitivity to eating out rather than staying at home.".
Closure of locations and emergency financing
As part of the bankruptcy process, On The Border is closing several of its restaurants in states such as Arizona, Arkansas, Colorado, and Connecticut. It is estimated that around 2800 employees will be affected by this decision.
Despite the restructuring attempt, the future of the chain is uncertain, and it is expected that in the coming months the next steps for its continuity or definitive liquidation will be defined.
On The Border: birth and expansion
The company opened its first location in 1982 under the name of "On The Border South Texas Café". It grew over the years to the point where it expanded internationally. By 2001, the franchise already had approximately 100 locations in the United States and in 2007, it even managed to establish itself in South Korea.
However, over the years, the company changed owners several times, going into the hands of Golden Gate Capital in 2010 and subsequently to Argonne Capital Group in 2014.
*This article has been automatically translated using artificial intelligence