On the Border Mexican Grill & Cantina Files for Bankruptcy Protection

On the Border Mexican Grill & Cantina has filed for Chapter 11 bankruptcy protection as of March 5, 2025. The Tex-Mex restaurant chain, owned by Argonne Capital Group, cited inflationary pressures, rising operational costs, and shifting consumer behaviors as key factors leading to this decision.

In the past year, On the Border has closed approximately 40 underperforming locations, reducing its footprint to 60 company-owned restaurants across 18 states and 20 franchised locations in the U.S. and South Korea. The company plans to use the bankruptcy proceedings to restructure its operations and pursue a sale of its assets. 

On the Border plans to restructure its operations and seek potential buyers for its assets. This filing aligns with a broader trend in the casual dining industry, with other chains like Red Lobster and TGI Fridays also seeking bankruptcy protection in recent years due to similar economic challenges. Some locations may remain open, but more closures are possible.