On the Border Mexican Grill & Cantina has filed for bankruptcy protection, citing pressure from inflation and changing customer behavior.
The chain, which is owned by Atlanta-based Argonne Capital Group, filed Tuesday in federal bankruptcy court in northern Georgia. It joins several other casual chains that have filed for bankruptcy protection over the last year, including Red Lobster and TGI Fridays.
On the Border has shuttered all of its remaining locations in Georgia over the past few years. In the court documents, the chain listed 77 of its locations where it wanted to end its leases and intends to vacate. These include six already-closed locations in Georgia, in Buckhead, Alpharetta, Kennesaw, Duluth, Buford and Athens.
On the Border said in the court papers that customers dined out less in recent years as restaurant inflation outpaced grocery prices. The chain said rising minimum wages in many states also added to its costs, and it has struggled to recruit and retain workers.
The company declined to comment.
Last month, On the Border closed 40 locations. It still operates 60 restaurants in 18 states, which will remain open while the bankruptcy proceeds. Franchisees run an additional 20 restaurants in the U.S. and South Korea, the company said.
The company employs about 2,800 people, including 375 full-time hourly employees, 2,210 part-time hourly employees and 216 full-time salaried employees, according to the court documents.
In 2024, On the Border spent about $25,315,000 in lease obligations, according to the court documents. Over $11,878,000 of this amount related to underperforming stores.
On the Border said it expects to complete a sale of its assets soon.
On the Border opened its first restaurant in Dallas in 1982. In 1994, it was acquired by Chili’s owner Brinker International, which began opening franchised locations. By 2001, On the Border had more than 100 restaurants in the U.S. It expanded into South Korea in 2007.
Brinker sold On the Border to Golden Gate Capital in 2010. Four years later, Golden Gate sold the chain to an affiliate of Argonne.
Argonne is a private equity firm based in Atlanta. The company invests in restaurants, retail and light industrial sectors. It’s a franchisee of IHOP, Applebee’s and Planet Fitness, among a number of other restaurant and retail chains.
On the Border appointed longtime restructuring expert Jonathan Tibus as its chief restructuring officer, who briefly served as the CEO of Red Lobster in 2024 as it filed and eventually emerged from bankruptcy.
Tibus, based in Atlanta, is a managing director with Alvarez and Marsal, a management consulting firm that also provides restructuring advisory services to debtors and distressed companies.
Keep Reading
The Latest
Featured
