Popular Tex-Mex Chain Abruptly Closes Almost All of Its Restaurants and Files for Bankruptcy
For fans of On the Border Mexican Grill & Cantina, the restaurant chain's long struggle appears to have reached its final chapter.
After months of closures, a bankruptcy filing, and a last-minute rescue attempt, the popular Tex-Mex chain has now closed nearly all of its restaurants and filed for Chapter 7 bankruptcy liquidation.
On the Border's Problems Started Long Before Bankruptcy
The chain's troubles began to accelerate in 2024 when several locations unexpectedly shut their doors. Things worsened in March 2026 when On the Border filed for Chapter 11 bankruptcy protection.
As part of that restructuring effort, the company immediately closed nearly 80 restaurants-roughly two-thirds of its locations at the time. The filing raised concerns that the brand could disappear entirely. Instead, a potential lifeline arrived just two months later.
In May, Pappas Restaurant Group acquired the On the Border brand and initially expressed optimism about turning the business around. The company announced plans to invest in the chain, improve food quality, strengthen operations, and overhaul portions of the menu.
At the time, the acquisition appeared to offer hope for both employees and longtime customers. That optimism proved short-lived. On June 11, all company-owned On the Border locations abruptly closed.
And now, the situation is even more serious.
ON THE BORDER just filed CHAPTER 7 and is shutting down all company-owned spots. Another Tex-Mex legend hits the queso in the sky.
— Make Me Fries (@xmakemefries) June 20, 2026
OTB Hospitality (the folks running the chain under Pappas) pulled the plug after closing locations earlier this month. Franchise spots in a few… pic.twitter.com/HS4E8kSmNp
Chain Files for Chapter 7 Liquidation
According to court filings, OTB Hospitality-the operating company behind On the Border-voluntarily filed for Chapter 7 bankruptcy on June 19.
Unlike Chapter 11, which is designed to help businesses reorganize and continue operating, Chapter 7 is a liquidation process that typically involves winding down operations and selling assets.
In a statement, Chris Pappas acknowledged the difficult decision.
"This was an incredibly difficult decision," he said. "Our teams worked hard over the past year to stabilize the business, but it became clear that OTB would require substantial ongoing investment that would pull focus and resources away from the core operations that define who we are."
What Happens Next?
Pappas Restaurants emphasized that the bankruptcy filing applies only to OTB Hospitality and does not affect its other restaurant brands. For On the Border, however, the future appears uncertain.
While the brand itself still exists as an intellectual property asset, the closure of company-owned restaurants and the Chapter 7 filing represent a significant blow to a chain that once had hundreds of locations across North America.
For many customers, the sudden closures mark the end of an era for one of the country's most recognizable Tex-Mex restaurant brands.
This story was originally published by Men's Journal on Jun 22, 2026, where it first appeared in the News section. Add Men's Journal as a Preferred Source by clicking here.
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This story was originally published June 21, 2026 at 7:00 PM.