On The Border Files Chapter 7 as 155 Locations Close, June 21

On The Border Mexican Grill & Cantina filed for Chapter 7 liquidation on June 19, 2026, ending its attempt to restructure after Chapter 11 bankruptcy in March 2025. The chain closed all 155 company-owned locations by June 12, leaving only five franchise restaurants open. Parent company Pappas Restaurants cited the need for substantial ongoing investment as the reason for the wind-down.

From 160 Restaurants to Five

On The Border operated over 160 restaurants at its peak before filing Chapter 11 bankruptcy in March 2025. Pappas Restaurants acquired the chain two months later but could not stabilize operations. The company closed 155 company-owned locations by June 12, 2026, leaving only five franchise restaurants open. These remaining locations are in San Diego, Escondido, Las Vegas, Rapid City South Dakota, Orlando International Airport, and one in South Korea.

Chapter 7 Liquidation Begins

OTB Hospitality, the operating company, filed for Chapter 7 bankruptcy on June 19 to begin orderly asset liquidation under a trustee. Chris Pappas, spokesperson for OTB Hospitality, said the chain required substantial ongoing investment that would drain resources from Pappas Restaurants’ core brands. The filing applies only to OTB Hospitality, not to Pappas Restaurants itself, which continues operations with financial stability.

Employees Face Sudden Job Loss

Workers received only two days notice before the June 12 closures. One employee at the Wichita Falls location told media she was a single mother who walked to work daily. She called the two-day notice “a slap in the face” to employees with families. OTB Hospitality said it focused on supporting team members through the transition, though details remained unclear.

Four Decades of Tex-Mex Service Ends

On The Border opened its first location in Dallas, Texas in 1982 and served Tex-Mex staples like fajitas, tacos, burritos and margaritas for over 44 years. At its peak, the chain operated over 160 U.S. restaurants plus a dozen international locations in Puerto Rico and South Korea. The five remaining franchise locations continue to operate independently and are not included in the Chapter 7 filing.

Final Thoughts

On The Border’s collapse from 160 restaurants to five shows how quickly restaurant chains can fail under debt pressure. Investors should watch franchise-heavy models, as franchisees often survive while parent companies liquidate.

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