On the Border filed bankruptcy twice in 14 months — 150 locations to zero

On the Border opened its first location in Dallas, Texas on 29 October 1982, offering Mexican-inspired food in a casual dining format. It grew to over 150 locations across the United States and 13 in South Korea at its peak. Brinker International acquired and ran the chain from 1994 until it was sold to private equity in 2010.

The chain changed hands twice more — Golden Gate Capital in 2010 and Argonne Capital Group in 2014 — and each transaction added debt. By 2024, On the Border was struggling with inflation, rising interest costs, and declining foot traffic in the casual dining segment.

On 5 March 2025, On the Border filed for Chapter 11 bankruptcy with assets and liabilities between $10 million and $50 million. Half its locations closed. The chain was sold out of bankruptcy to Pappas Restaurants in May 2025. But Pappas could not turn it around — on 12 June 2026, Pappas filed for Chapter 7 liquidation, closing all company-owned locations for good.

Franchise-owned locations in South Dakota, Florida, Nevada, California and South Korea survived the liquidation, but must be renamed. The chain that served Mexican food for 44 years was reduced to franchisees operating under new names.