On the Border closing more than 70 restaurants after filing for bankruptcy: See list
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Denny's closing most restaurants than originally planned
Last year it said it would be shutting down 150 of its locations — about 10% — in unprofitable areas. Now, the diner chain is closing an additional 30 locations bringing to total to 180.
Scripps News
Following the Chapter 11 bankruptcy filing from On the Border Mexican Grill & Cantina, court records show that the restaurant chain is closing more than 70 locations, asking the court to allow it to reject its leases across the U.S.
Earlier this month, On the Border filed for Chapter 11 bankruptcy, citing difficult economic conditions, labor shortages, underperforming restaurants and creditor enforcement actions.
OTB Holdings Chief Restructuring Officer Jonathan Tibus said the company had been affected by "macroeconomic factors."
"On The Border has been weighed down in recent years by macroeconomic factors that have negatively impacted the Company. Casual dining restaurants are acutely impacted by consumer sensitivities to eating out versus staying in," Tibus said in court records obtained by USA TODAY.
At the time of filing, On the Border had 60 company-operated restaurants across the U.S., but records show the company has already more than 70 locations.
Here's what you need to know.
Which On the Border locations are closing or have closed?
Some On the Border locations listed in the court filings have already been closed by the company. For example, one location in Phoenix was closed in late February, according to local news station ABC15.
The following list shows the locations whose leases the company is trying to offload:
What is On the Border?
In court records, Tibus described the history of the company.
'Originally known as 'On The Border South Texas Café,' the Company, in 1982, opened a single cantina with the goal of sharing bold, border-style food with its customers,' he said.
Only 12 years after the opening of the restaurant, Brinker International acquired the company and opened the first franchised location. By 2001, more than 100 restaurants were opened across the U.S. and in 2007, the restaurant went international, opening locations in South Korea.
In 2010 the company, as well as 160 restaurants were sold to Golden Gate Capital which then turned around to sell it to Argonne Capital Group in 2014, court records say.
Court records say that at the time of filing, the company employed about 2,800 people.
Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at fernando.cervantes@gannett.com and follow him on X @fern_cerv_.
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