The On The Border chain of Tex-Mex restaurants has filed for Chapter 11 bankruptcy and has closed dozens of locations that were considered underperforming.
The company filed for bankruptcy protection in Georgia this week. WSB reported it is owned by Argonne Capital Group which also owns franchises of Applebee’s, IHOP and Wingstop among other businesses.
“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,” company president Chris Rockwood said, according to WSB.
The company has closed at least 77 On The Border locations total that were considered underperforming. Forty of them closed last month, The Associated Press reported.
Fast Company said the now-closed locations were located in the following 24 states:
- Arizona
- Arkansas
- Colorado
- Connecticut
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kansas
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- New Jersey
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Texas
- Virginia
Click here to see the list of restaurants that have shut down.
The locations that are still open are planned to remain that way through the bankruptcy process, Fast Company said
About 60 restaurants still operate in 18 states, the AP reported.
By filing Chapter 11, On The Border will look to restructure the company and then sell it.
On The Border in the filing said that people are not dining out as much because of the cost of restaurant inflation, adding that rising minimum wages added to the operation costs and that it was difficult to recruit and keep workers, the AP reported.
On The Border is the latest chain in the fast-casual category to file for bankruptcy or close locations.
Earlier this week, Red Robin said it could close nearly 70 underperforming locations.
Red Lobster and TGI Fridays also filed for bankruptcy and closed locations nationwide, WSB reported.
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