Closures come a year after restaurant chain was purchased from bankruptcy

CoStar News
Tex-Mex restaurant chain On The Border Mexican Grill & Cantina is closing all its corporate-owned U.S. restaurant locations about a year after a Texas-based restaurant group acquired the business from bankruptcy.
When Houston-based Pappas Restaurants bought On The Border, it had 60 company-owned restaurants across 18 states and 20 franchised locations in the United States and South Korea. Pappas has planned to modernize the restaurant chain.
An official for On The Border said in a statement the restaurant chain has “made the difficult decision to move forward with a significant transition in its restaurant operations” that include “the closing of company-owned locations by end of day Friday, June 12.”
The decision comes after a “thorough evaluation of the business and was not made lightly,” officials said, adding it is evaluating the future of the brand and “exploring a range of strategic options.”
The closure is for On The Border’s corporate-owned restaurants. According to On The Border’s website, the restaurant closures are located in Arkansas, Kansas, Michigan, New Jersey, North Carolina, Oklahoma, Pennsylvania and Texas.
The chain’s 20 franchised locations in the United States, including South Dakota, Florida, Nevada, California, as well as eateries in South Korea, aren’t expected to be impacted by this closure.
It’s unclear how On The Border’s future will remain a part of the Pappas Restaurants, a family-run restaurant chain with brands such as Pappas Bros. Steakhouse, Pappadeaux Seafood Kitchen and Little’s Oyster Bar.
At the time Pappas Restaurants acquired On The Border from bankruptcy, Chief Marketing Officer Christina Pappas said the On The Border brand carriers “a deep heritage and a loyal community that we are proud to welcome to the Pappas family.”
Representatives for Pappas Restaurants did not immediately return requests for comment from CoStar News.
