Lauge Risom Koch 
Tex-Mex chain On The Border has closed all of its company-owned restaurants following a bankruptcy restructuring and sale to Pappas Restaurants.
Tex-Mex restaurant chain On The Border has closed all of its company-owned locations as part of a major restructuring effort following its bankruptcy and sale to a new owner.
Franchised restaurants will continue operating, but the decision has left employees and customers across the United States scrambling for answers.
Nationwide closures
According to The Independent, On The Border Mexican Grill & Cantina closed all company-owned restaurants on June 12.
The chain filed for Chapter 11 bankruptcy protection in March 2025 and was acquired by Pappas Restaurants two months later.
At its peak, the company operated around 60 locations, but that number had already been reduced significantly following the acquisition.
OTB Hospitality, which manages the brand’s corporate operations, confirmed the closures in a statement.
Franchise locations remain
While company-owned restaurants have shut their doors, independently operated franchise locations will continue serving customers.
According to The Independent, those locations include restaurants in states such as Florida, Nevada, California and South Dakota, as well as outlets in South Korea.
The company said its immediate priority is supporting employees affected by the closures and ensuring an orderly transition.
Employees caught off guard
Many employees said they received little warning before the closures.
One worker at a Wichita Falls, Texas, location told local station KFDX/KJTL that staff learned only days before operations ceased.
“I was called by several employees informing me that they were shutting down all On The Border locations and our last day would be Friday,” the employee said.
End of an era
Customers also expressed disappointment at the closures.
According to The Independent, some longtime patrons described the restaurants as regular gathering places, while others shared personal stories connected to the chain.
On The Border opened its first restaurant in Dallas, Texas, in 1982 and became known for its Tex-Mex menu featuring tacos, fajitas and margaritas.
Sources: The Independent, KFDX/KJTL
