The restaurant sector in the United States is going through a difficult time, and one of the most popular Tex-Mex food chains has announced its bankruptcy, generating uncertainty in several cities across the country. On the Border Mexican Grill & Cantina, known for its Mexican food offerings and laid-back atmosphere, has initiated a restructuring process under Chapter 11, which implies the closure of multiple branches in different states, especially in Texas, where it has a strong presence.
With over 60 restaurants operating in the United States and presence in some international markets, the bankruptcy announcement has particularly impacted Texas, where the chain has numerous establishments in cities such as Houston, Dallas, and Austin. For years, On the Border has been a reference point for Tex-Mex food lovers, attracting both locals and tourists.
Now, the uncertainty about which branches will close their doors worries employees and regular customers who have seen how several restaurant chains have vanished in recent years. The deterioration of economic conditions, the rise in operating costs, and labor shortages have been some of the factors that have led the chain to this situation.
The restructuring director of OTB Holdings, Jonathan Tibus, explained that "financial difficulties and creditor actions have made it necessary to make this decision to ensure the future viability of the business". Additionally, it is estimated that at least 40 underperforming locations will permanently close as part of the restructuring plan.
Filing under Chapter 11 of the Bankruptcy Code allows the company to reorganize while seeking alternatives to keep its operations running. On the Border has announced its intention to sell its assets to a Pappas Restaurants subsidiary, which could ensure the continuity of the brand and avoid total liquidation.
Despite these efforts, the future of the chain remains uncertain, and will depend on the company's ability to adapt to the new market conditions and regain consumer confidence.
On the Border's case is not isolated. Other casual dining chains in the United States, such as TGI Fridays and Red Lobster, have also faced economic difficulties in recent years, being forced to close branches and rethink their business models.