US Restaurant Chain on the Border Shuts Company-Owned Locations Following Bankruptcy and Ownership Change
Restaurant chain On The Border Mexican Grill & Cantina has closed all of its company-owned locations as of June 12, 2026, marking a major shift for the Tex-Mex brand that filed for Chapter 11 bankruptcy protection last year.
Restaurant chain On The Border Mexican Grill & Cantina has closed all of its company-owned locations as of June 12, 2026, marking a major shift for the Tex-Mex brand that filed for Chapter 11 bankruptcy protection last year.
The restaurant chain confirmed the closures in a statement, describing the move as part of a broader operational transition. According to the company, the decision followed a comprehensive review of its business and long-term prospects. Starbucks Layoffs: Coffee Giant To Cut 300 Corporate Jobs as CEO Brian Niccol Shuts Regional Offices in US.
On The Border, which was founded in Texas in 1982, filed for bankruptcy in March 2025. Two months later, the brand was acquired by Dallas-based Pappas Restaurants. At the time of the acquisition, Pappas took control of approximately 60 U.S. locations and 20 franchised restaurants in South Korea.
Since then, the chain has steadily reduced its footprint across the United States. While the company once operated dozens of locations nationwide, its website currently lists only 33 restaurants. Before the latest closures, Texas remained the brand's largest market, accounting for 17 locations. Starbucks Cuts 300 Corporate Jobs, Shuts Some US Offices in Turnaround Push.
The company said it is currently evaluating the future of the On The Border brand and exploring various strategic options. It also noted that its immediate priority is supporting employees affected by the closures and ensuring an orderly transition.
Not all restaurants carrying the On The Border name are shutting down. The company confirmed that independently operated franchise locations in South Dakota, Florida, Nevada, California and South Korea will continue operating. According to the chain's store locator, several franchised restaurants remain open in those markets.
The closures affect company-owned locations across multiple states, including Texas, Arkansas, Kansas, Michigan, New Jersey, North Carolina, Oklahoma and Pennsylvania.
The announcement comes as the U.S. restaurant industry continues to face economic pressures, shifting consumer spending habits and rising operating costs. For On The Border, once a prominent player in the casual dining sector, the latest closures represent another chapter in its ongoing restructuring efforts as the company weighs the future of the decades-old restaurant chain.
(The above story first appeared on LatestLY on Jun 13, 2026 04:32 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).