Mexican casual dining chain On the Border Mexican Grill & Cantina has filed for Chapter 11 bankruptcy in the US, highlighting persistent challenges within the foodservice sector.
The company’s recent filing in the Georgia Northern District bankruptcy court reveals assets and liabilities between $10m and $50m.
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The move follows the recent closures of 12 restaurants throughout the country.
Private investment firm Argonne Capital Group acquired On the Border from Golden Gate Capital in 2014.
The Atlanta-based investment firm also operates other well-known franchises such as Applebee’s, IHOP and Wingstop.
Founded in 1982 in Dallas, On the Border is known for its Tex-Mex cuisine, including popular items such as fajitas, margaritas and guacamole.
After being acquired by Brinker International, the parent company of Chili’s, in 1994, On the Border expanded rapidly, peaking at 166 locations in 2007.
But sales and unit counts declined steadily from 2008, a trend exacerbated by the Covid-19 pandemic.
Despite a brief recovery in 2021 and 2022, the last available Technomic data from 2023 shows a 3% drop in sales, with the chain operating 120 locations and not having returned to pre-Covid sales volumes, as reported by Restaurant Business.
On the Border’s bankruptcy filing is part of a broader trend within the casual dining sector.
In the 12 months to March 2025, chains such as Red Lobster, TGI Fridays and Buca di Beppo have also sought bankruptcy protection.
In February, Hooters of America disclosed considerations for bankruptcy, citing financial struggles, declining foot traffic and location closures.
