The operating company behind On the Border Mexican Grill has filed for Chapter 7 bankruptcy liquidation. OTB Hospitality, which ran the chain’s corporate-owned locations, initiated the legal process to dissolve its assets.
All company-owned restaurants have closed as a result of the filing. Franchised locations are not affected and continue to operate as independent businesses.
The bankruptcy filing only applies to OTB Hospitality, not the franchise network. Franchisees maintain separate ownership and are not part of the court proceedings.
Chapter 7 bankruptcy involves selling off a company’s assets to repay creditors. Unlike Chapter 11, which allows reorganization, Chapter 7 leads to permanent closure of the business entity.
The shutdown affects dozens of corporate-run restaurants across multiple states. Employees at these locations have been laid off without prior notice.
Franchise restaurants remain open under their existing agreements. Customers can still visit those locations for the same menu and service.
The decision marks a significant shift for the brand, which operated for decades in the casual dining space. The company faced mounting financial pressures in recent years.
