Restaurant group Pappas Restaurants abandons On the Border after less than two months of ownership, triggering liquidation.
On the Border, the Mexican casual-dining chain, has filed for Chapter 7 bankruptcy, marking the end of its operations after a failed revival effort. The company, acquired by Pappas Restaurant Group in May, abruptly closed all remaining locations on June 11, just weeks after the purchase. Pappas had pledged to overhaul the brand but abandoned the effort, leading to the liquidation filing on June 19.
The chain previously filed for Chapter 11 in March, closing nearly 80 of its 120 locations at the time. Pappas’s acquisition was seen as a last-ditch effort to salvage the brand, but the new owner cited insurmountable challenges in reviving the struggling chain. The Chapter 7 filing signals the final collapse of On the Border after years of decline.
No immediate market reaction was reported, as the chain operated primarily as a private entity under Pappas. The closure affects remaining employees and franchise locations, though the extent of financial fallout remains unclear.