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USA Today
09-05-2025
- Business
- USA Today
Pappas Restaurants to buy bankrupt On The Border Mexican Grill: 'A natural fit'
Pappas Restaurants to buy bankrupt On The Border Mexican Grill: 'A natural fit' Show Caption Hide Caption Despite filing for bankruptcy, Hooters vows to stay open Hooters, the restaurant chain known for its wings and all-female waitstaff in signature orange uniforms, has filed for Chapter 11 bankruptcy. Despite the filing, the brand insists it's not going anywhere. unbranded - Newsworthy The party might not be over for On The Border Mexican Grill & Cantina. On May 7, Texas-based Pappas Restaurants announced that it had won the auction, subject to court approval, to buy the bankrupt restaurant in the coming weeks. "We're excited to welcome On The Border to the Pappas family," Mike Rizzo, CEO of Pappas Restaurants, said in a news release. "On The Border is a brand with deep heritage and loyal guests, and we see tremendous opportunity to invest in its future. Our shared Texas roots and passion for hospitality make this a natural fit." Back in March, On The Border (OTB) 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. Tibus added that the company, along with debtors, decided in late February to close 40 "non-performing" stores. Pappas expands holdings With On The Border Mexican Grill & Cantina being bought out by Pappas Restaurants, it will join Pappadeaux Seafood Kitchen, Pappasito's Cantina, Pappas Bar-B-Q and Pappas Bros. Steakhouse as part of the restaurant's holdings. "On The Border has always stood out for its energy and bold flavors—it's a brand we've known and respected for years," Chris Pappas, co-owner of Pappas Restaurants, said. "This gives us the chance to bring our passion for Tex-Mex to more guests, and we're excited to build on what makes both brands special." Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at and follow him on X @fern_cerv_.
USA Today
19-03-2025
- Business
- USA Today
On the Border closing more than 70 restaurants after filing for bankruptcy: See list
On the Border closing more than 70 restaurants after filing for bankruptcy: See list Show Caption Hide Caption 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 and follow him on X @fern_cerv_.
Yahoo
09-03-2025
- Business
- Yahoo
Mexican food chain On The Border closes 40 restaurants, files for bankruptcy protection
On the Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy protection this week after closing dozens of restaurants last month, court documents show. At the time of filing, On the Border had 60 company-operated restaurants and listed estimated assets and estimated liabilities between $10 million and $50 million. According to court records, the company has more than $19 million in 'prepetition-funded debt.' OTB Holdings Chief Restructuring Officer Jonathan Tibus said the bankruptcy had been brought upon by difficult economic conditions, labor shortages, underperforming restaurants, and creditor enforcement actions, according to records viewed by USA TODAY. In the same filings, Tibus said the company, along with debtors, had decided in late February to close 40 "non-performing" stores. On The Border joins other casual chain restaurants that have faced difficulties and filed for bankruptcy in recent months. In mid-June 2024, seafood restaurant chain Red Lobster filed for Chapter 11 bankruptcy in Florida. In a statement released at the time the company said it intended to use the proceedings to "drive operational improvements, simplify the business through a reduction in locations, and pursue a sale of substantially all of its assets." But only months later the company announced that it was exiting Chapter 11 bankruptcy after a federal judge approved the chain's plan. In November 2024, TGI Friday announced it was also filing for Chapter 11 bankruptcy protection, citing the COVID-19 pandemic among its business challenges. "This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential," said Rohit Manocha, the executive chairman of TGI Fridays Inc., in a press release at the time. Bucca di Beppo filed for bankruptcy in August 2024, citing rising costs and hiring difficulty, according to information from the restaurant and court papers filed in the U.S. Bankruptcy Court for the Northern District of Texas. Contributing: Julia Gomez, Natalie Neysa Alund, Jonathan Limehouse and Mike Snider Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Reach him at and follow him on X @fern_cerv_. This article originally appeared on USA TODAY: On The Border closes 40 restaurants; chain files for bankruptcy Sign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
On the Border is the latest casual chain to file for Chapter 11
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. On the Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy protections this week, according to court documents. The casual chain, which had 60 company-operated units at the time of its petition date, listed estimated assets and estimated liabilities between $10 million and $50 million. It has over $19 million in prepetition funded debt, court records show. The chain's bankruptcy was precipitated by the difficult macroeconomic environment, labor shortages, underperforming restaurants and creditor enforcement actions, among other factors, OTB Holdings Chief Restructuring Officer Jonathan Tibus said in first day pleadings. Much like other chains that have declared bankruptcy in recent years, including Red Lobster, TGI Fridays and Buca di Beppo, On the Border grew significantly in the 1990s and early 2000s when casual dining was particularly popular. That growth was then reversed by recent economic trends that led to a decline in dining out at full-service chain restaurants. On the Border opened its first location in 1982 in Dallas, Texas, serving mesquite-grilled fajitas, margaritas and endless chips and salsa, said Tibus, who served as CEO of Red Lobster as that chain prepared for its Chapter 11 filing. On the Border grew its store base domestically and internationally, and in 1994, Brinker International acquired the chain. By 2001, the chain had 100 domestic locations and in 2007 it expanded into South Korea with several franchised units, Tibus said. In 2010, Brinker sold the 160-unit chain to Golden Gate Capital, which then sold the company in 2014 to Border Holdings, an affiliate of private equity firm Argonne Capital Group. In 2020, Utz acquired the rights to manufacture chips and dips using the On The Border brand name. The Mexican food chain has not been able to escape years of macroeconomic factors that negatively impacted its restaurant business, including consumers pulling back on restaurant consumption as menu prices rose faster than grocery costs, Tibus said. Additionally, wages have outpaced the company's ability to increase prices, adding additional pressures on margins. 'The Debtors have struggled in the last year to recruit and maintain a complete workforce, which diminishes the Debtors' ability to operate efficiently,' Tibus said. On Feb. 24, the chain closed 40 underperforming locations that had rent costs and/or financial performance that was deemed to be 'financially burdensome to the rest of the Company,' Tibus said. Last year, the chain spent over $25 million on leases with $11.9 million paid in leases on underperforming locations, which strained the company's liquidity. Following the company's rapid loss of liquidity in the months leading to its Chapter 11 filing, the chain had to 'institute holds on vendor payments and rent payments to maintain cash.' That led vendors and landlords to cut off service, withhold goods and repossess leased premises. 'This resulted in the Company losing stores, additional operational challenges, and a severe liquidity crisis,' Tibus said. The company expects its bridge lender, CrossFirst, to also serve as the debtor-in-posession lender and enter into a stalking horse asset purchase agreement. On the Border will also seek higher or better bids through the marketing process. Bidding procedures are expected to begin in early April. Recommended Reading On the Border shifts toward tiered loyalty Sign in to access your portfolio
