On The Border chain files for bankruptcy, all Georgia locations closed
Low-angle view of sign for On the Border, a Southwestern and Mexican cuisine restaurant in Dublin, California, October 10, 2018. (Photo by Smith Collection/Gado/Getty Images)
ATLANTA - On The Border Mexican Grill & Cantina is the latest casual dining chain to file for Chapter 11 bankruptcy protection, following a trend of struggling restaurant brands, according to FastCompany.com. The company, owned by OTB Holding LLC, announced the filing on March 5 in Georgia, citing financial challenges that have led to widespread closures and operational hurdles.
Locations closed in 24 states
What we know:
On The Border’s bankruptcy filing in the U.S. Bankruptcy Court in the Northern District of Georgia comes as casual dining chains face declining foot traffic and economic pressure. The company has already closed at least 77 locations, deemed underperforming or unprofitable.
The list of locations it has closed spans 24 states: Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Texas, Virginia.
All 6 Georgia locations are no longer listed on the company's website. On The Border could previously be found in Athens, Atlanta, Alpharetta, Buford, Duluth and Kennesaw.
According to a court filing, OTB’s chief restructuring officer, Jonathan M. Tibus, stated that the company suffered a "rapid loss of liquidity" in recent months, forcing it to halt vendor and rent payments to conserve cash. This led landlords and vendors to cut off service, repossess properties, and withhold goods, creating further operational challenges and worsening the financial crisis.
Despite the financial turmoil, On The Border still operates 80 restaurants worldwide, with 60 locations in the United States across 18 states. The company has expressed its intent to continue operations during the bankruptcy process. It currently employs about 2,800 individuals.
Necessary for long-term survival
What they're saying:
On The Border President Chris Rockwood said the restructuring was necessary for the company’s long-term survival.
"Restructuring is the best path forward for On The Border. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth," Rockwood said.
The filing did not specify the exact reasons for the bankruptcy, but industry trends suggest that rising inflation and shifting consumer habits played a significant role. Many casual dining chains have struggled as customers opt to cook at home rather than dine out due to economic pressures.
Difficult year for casual dining chains
The backstory:
On The Border’s bankruptcy follows a difficult year for casual dining chains. In 2024, major brands including Red Lobster, TGI Fridays, and Roti also filed for Chapter 11 bankruptcy as they struggled with declining sales and rising operational costs.
Red Robin is also considering closing 70 of its locations.
The broader industry downturn has been fueled by inflation-driven shifts in consumer behavior, labor shortages, and increased competition from fast-casual and delivery-based restaurants.
What's next:
While On The Border has already shuttered dozens of locations, the company hopes to stabilize its remaining restaurants through the restructuring process. However, additional closures could still happen depending on the bankruptcy court’s rulings and the company's financial recovery plan.