On the Border Files For Chapter 7

OTB Hospitality, parent company of On the Border Mexican Grill & Cantina, filed for Chapter 7 bankruptcy liquidation on June 19. The Dallas-based Tex-Mex chain had filed for Chapter 11 bankruptcy protection in March 2025, after closing 40 locations that February.

Houston, TX-based Pappas Restaurants, which operates the Pappadeaux Seafood Kitchen, Pappasito’s Cantina, Pappas Bar-B-Q and Pappas Bros. Steakhouse brands, had acquired On the Border in May 2025. But the chain’s challenges, which include higher costs, operational difficulties and fewer people dining out, continued.

On the Border, founded in 1982, had more than 150 locations at its peak. It closed its 28 company-owned units earlier this month and now has just five franchised restaurants.

Casual dining brands have struggled in recent years, with several filing for bankruptcy and some closing down altogether. For instance, barbecue chain Smokey Bones permanently closed all of its remaining restaurant locations nationwide in April, following a Chapter 11 bankruptcy filing by its parent company, Twin Hospitality and FAT Brands.

Darden Restaurants in February announced it was closing all locations of its Bahama Breeze brand. And Iron Hill Brewery & Restaurant abruptly shut down all units in September 2025.

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