Sadly, it appears that rising food costs and an unstable economy could close down another popular restaurant chain. Nation’s Restaurant News reported that Atlanta-based On The Border restaurant filed for Chapter 11 bankruptcy protection on March 4, citing more than $25 million in debt to more than 10,000 creditors. The chain closed 40 underperforming stores and asked the court to allow the company to break leases for the now-vacant properties.
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But it’s not all bad news for On The Border. There are 60 locations open today, and the company plans to keep those restaurants open. It also reportedly hired Johnathan Tibus as chief restructuring officer to help oversee the company’s reorganization. Tibus recently helped in restructuring efforts for Red Lobster and successfully helped the chain recover.
On The Border Has a History Of Financial Struggle
According to Nation’s Restaurant News, On The Border hired a new CEO in 2020 to help modernize the brand and boost sales, but the efforts were not as fruitful as the company had hoped.
As news of On The Border’s bankruptcy filing made its way around social media, many took to the company’s Instagram page to share their sadness. The company posted about “Free endless chips and salsa forever” on February 24, but fans aren’t so sure.
Someone shared, “NO. I feel like I lost a friend. Bring it back.”
Another person agreed, “I just learned our local OTB has closed permanently, like in the last couple days. We will miss our servers and the great food.”
A former On The Border employee wrote a sad update reading, in part, “This company closed down a total of 29 restaurants nationwide just overnight. Monday morning, we came in to work and were told the horrible news. NO JOB. They simply told our managers we were shut down and if we had any questions to reach out to HR. I have yet to hear back from HR. No one wants to give us any answers. But they simply didn’t care.”
This story’s featured image is by JeniFoto via Shutterstock.
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