The Tex-Mex chain shut 33 company-operated locations after restructuring and bankruptcy, shifting focus to franchise sites.
On The Border Mexican Grill & Cantina closed all 33 of its company-owned US restaurants on 12 June 2026. The decision follows a prolonged restructuring after filing for Chapter 11 bankruptcy in March 2025 and subsequent acquisition by Pappas Restaurants.
The chain previously operated 60 outlets but reduced its footprint steadily post-acquisition. Franchise locations, including those in South Dakota and Florida, remain unaffected. The operator cited a “significant transition” in operations but did not detail employee support plans.
OTB Hospitality stated its focus is on ensuring an orderly closure and supporting affected team members during the transition.