The chips and salsa have run dry for a beloved Tex-Mex restaurant chain, which will reportedly close all its locations following a Chapter 11 bankruptcy buyout.
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According to Chron and The Street, On The Border Mexican Cantina & Grill is reportedly closing most (and perhaps all) of its locations nationwide. The closures come just one year after Houston’s Pappas Restaurants, Inc acquired the chain.
On June 11, several On The Border managers confirmed to Chron that their locations would be closing for good this week. However, the memo seems to be making its way down the corporate ladder at different speeds. Some managers said they hadn’t heard the news, while another who did said restaurants were being told at different times based on their “hierarchy.”
“After Friday, we are permanently closing. We are trying to stay open for Thursday and Friday, but after that, we’re closing,” one manager told the outlet.
In a statement, On the Border Hospitality confirmed the closures but added that it was “evaluating the future of the On The Border brand.”
“On The Border Mexican Grill & Cantina has made the difficult decision to move forward with a significant transition in its restaurant operations, which will include the closing of company-owned locations by end of day Friday, June 12, 2026,” the statement explained, per Chron. “This decision follows a thorough evaluation of the business and was not made lightly. We are currently evaluating the future of the On The Border brand and exploring a range of strategic options.”
Tex-Mex Restaurant Chain Filed for Chapter 11 Bankruptcy Last Year
On the Border, founded in Dallas in 1982, is known for its Tex-Mex, margaritas, and endless chips and salsa. After over 40 years, the chain continues to shrink its footprint amid financial headwinds.
According to The Street, these closures are part of a larger plan to trim the fat by shuttering underperforming restaurants. While Texas is still its biggest market, On the Border has already packed its bags and left states like Georgia, New York, and Ohio, among others.
The latest closures come over a year after On the Border filed for Chapter 11 bankruptcy in March 2025. In court filings, the company blamed its money troubles on a familiar cocktail of declining traffic, inflation, and rising labor costs. At the time, the chain reported being over $25 million in debt.