A much-loved Tex-Mex restaurant has revealed it is closing down over 70 stores after filing for bankruptcy.
On the Border Mexican Grill & Cantina, backed by owners Argonne Capital Group, revealed it had petitioned for Chapter 11 bankruptcy protection earlier this month. The business had said it was considering closing dozens of outlets upon lease expirations as part of a strategy to rejuvenate its business operations.
It comes as Chipotle hit back at social media rumors and made an announcement about the future of its own stores. Now, On the Border has published the full list of the closures, which will take place across several different states after another beloved restaurant shuts 130 stores in tragic decline after feeding US for 60 years.
Texas leads the tally with 13 closures, while six restaurants will be shuttered in Georgia. Four outlets will go out of business in Oklahoma, Arizona, Florida, Illinois, Michigan, Missouri, North Carolina, and Oklahoma.
Others states including Arkansas, Colorado, Connecticut, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, Ohio, Pennsylvania and Virginia will see between one and three restaurants close.
On the Border's Chief Restructuring Officer, Jonathan Tibus, blamed “inflationary pressures” and a drop in casual dining in court filings. He said, according to The U.S. Sun: “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.
"And because inflationary pressures, restaurant menu prices across the industry have risen significantly faster than grocery and other consumer prices."
Chris Rockwood, the president of On the Border, said the bankruptcy proceedings would let the company “drive operational improvements”. He went on: “This restructuring is the best path forward for On The Border. It allows us to address several financial and operational challenges and emerge stronger and refocused on our growth.
"The support we’ve received from our vendors and lenders will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests. The Company intends to use the (bankruptcy) proceedings to drive operational improvements and pursue a sale of substantially all of its assets."
Previous years have seen household names like TGI Friday's, Denny's, Ruby Tuesday, Rubio's Coastal Grill, and Red Lobster seeking sanctuary in bankruptcy proceedings, and Hooters of America might soon join the queue, reports the Mirror US.
According to bankruptcy lawyer Daniel Gielchinsky, "customers never came back in full force" post-pandemic due to shifts in their habits and spending power. This has resulted in flat sales for these highly leveraged dining establishments, hampering their ability to manage their debt burden.
While some businesses managed to avoid bankruptcy, they significantly reduced their operations to better align with current market trends and attract customers back.
On the Border, which opened its first restaurant in Dallas in 1982, was bought by Chili's owner Brinker International in 1994. This led to the opening of franchised locations, and by 2001, On the Border had over 100 restaurants across the U.S. The chain expanded into South Korea in 2007. In 2010, Brinker sold On the Border to Golden Gate Capital, who then sold it to Argonne in 2014.
Find the full list of closures here:
79 - Arizona 1710 S. Power Rd., Mesa
31 - Arizona 5005 E. Ray Rd., Phoenix
126 - Arizona5205 E. Broadway Blvd., Tucson
78 - Arizona7873 W Bell Rd., Peoria
239 - Arkansas2324 Red Wolf Blvd., Jonesboro
233 - Arkansas6000 Warden Rd., Sherwood
74 - Colorado14255 W. Colfax, Golden
187 - Colorado6015 Sky Pond Dr., Loveland
21 - Colorado7695 N. Academy Blvd., Colorado Spring
143 - Connecticut220 Indian River Rd., Orang
230 - Florida12295 SW 88th St., Miami
249 - Florida12517 State Road 535, Orlando
231 - Florida15301 NW 67th Ave., Miami Lakes
247- Florida3250 Rolling Oaks Blvd., Kissimmee
57 - Georgia1 Buckhead Loop NE, #130, Atlanta
68 - Georgia10575 Davis Dr., Alpharetta
56 - Georgia2275 Pleasant Hill Dr., Duluth
122 - Georgia3206 Buford Dr., Buford
111 - Georgia3640 Atlanta Hwy., Athens
125 - Georgia790 Cobb Place Blvd., Kennesaw
62 - Illinois1915 Glacier Park Ave., Naperville
124 - Illinois3050 E. Main St., St. Charles
42 - Illinois535 N. Lakeview, Vernon Hills
235 - Illinois870 N. Meacham Rd., Schaumburg
130 - Indiana6001 E. 86th St., Indianapolis
167 - Iowa140 S. Jordan Creek Pkwy., W. Des Moines
116 - Kansas11855 W 95th St., Overland Park
160 - Kansas3080 Iowa St., Lawrence
26 - Kansas5200 W. 119th St., Leawood
146 - Maine420 Maine Mall Rd., Portland
237 - Maryland3803 Boston St., Baltimore
141 - Massachusetts19 Commerce Way, Woburn
145 - Massachusetts33 Border Way, W. Springfield
244 - Michigan12383 James St., Holland
44 - Michigan21091 Haggerty Rd., Nov
241 Michigan35613 Warren Rd., Westland
99 - Michigan3930 Baldwin Rd., Auburn Hills
201 - Mississippi6572 Airways Rd., Southhaven
137 - Missouri1800 NW Chipman Rd., Lees Summit
136 - Missouri19921 E Jackson Dr., Independence
246 - Missouri3030 S. Rangeline Rd., Joplin
71 - Missouri8340 NW Roanridge Rd., Kansas City
252 - New Jersey1201 Hooper Ave Suite A20, Toms River
39 - New Jersey1738 US-46, Woodland Park
245 - New York200 Broadway Mall, Hicksville
223 - New York45 Middle Ave., Holtsville
135 - North Carolina10710 Providence Rd., Charlotte
38 - North Carolina1102 Walnut St., Cary
184 - North Carolina1128 Military Cutoff Rd., Wilmington
191 - North Carolina2409 E. Franklin Blvd., Gastonia
73 - Ohio4175 Morse Crossing, Columbus
151 - Oklahoma3500 NW Expy., Oklahoma City
242 - Oklahoma433 Planet Ct., Midwest City
202 - Oklahoma544 Interstate 240, Oklahoma City
22 - Oklahoma8702 E 71st St. South, Tulsa
199 - Pennsylvania102 Bartlett Ave., Exton
208 - Pennsylvania796 Woodland Dr., Wyomissing
9 - Texas1505 N. Central Expy., Plano
17 - Texas1890 S Stemmons Fwy., Lewisville
2 - Texas2011 Copeland Rd., Arlington
129 - Texas213 N. Central Expwy., Allen
1 - Texas3130 Knox St., Dallas
251 - Texas3130 Knox St., Dallas
28 - Texas4306 W. Loop 250 North, Midland
192 - Texas4855 Belt Line Rd., Addison
81 - Texas500 State Hwy 121, Plano
222 - Texas5960 W Parker # 210, Plano
54 - Texas6709 Slide Rd., Lubbock
48 - Texas709 Texas Ave., College Station
238 - Texas890 E Highway 114, Roanoake
41 - Virginia11880 Spectrum Ctr., Reston
236 - Virginia11947U Fair Oaks Mall - G213, Fairfax
69- - Virginia2651 Prince William Pkwy., Woodbridge
