A familiar name in the casual dining industry has reached another major turning point. After years of financial struggles, the Tex-Mex restaurant chain is now selling off equipment and other assets from locations that have already closed.
On The Border shuts down corporate restaurants
On The Border’s parent company, OTB Acquisition LLC, filed for Chapter 7 bankruptcy earlier this year, putting the future of the restaurant chain in serious question.
As part of the bankruptcy proceedings, approximately 50 corporate-owned On The Border restaurants were closed. The closures affected locations across the country and left employees and longtime customers without a nearby restaurant.
Unlike Chapter 11 bankruptcy, which is generally designed to give a company an opportunity to reorganize and continue operating, Chapter 7 involves liquidation of assets.
That means the latest development goes beyond simply closing restaurants.
Restaurant equipment is now being liquidated
Equipment and other items from the shuttered restaurants are being offered for sale as part of the liquidation process.
Items can include commercial kitchen equipment, restaurant furnishings and other property used to operate the locations. The sales provide a way for the bankruptcy estate to recover money that can be distributed to creditors.
The liquidation is another indication of how dramatically the company’s restaurant footprint has changed.
What happens to On The Border next?
The future of the On The Border brand remains uncertain as the bankruptcy process continues.
The chain has historically been known for its Tex-Mex menu, including fajitas, tacos, enchiladas and margaritas. At its height, the brand operated restaurants across numerous states and became a recognizable name in casual dining.
The recent closures reflect the broader challenges facing restaurant chains as consumers contend with higher prices while operators face rising labor, food and operating costs.
The latest asset sales could mark one of the final chapters in the long-running restaurant chain’s corporate history.
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