Popular Tex-Mex chain just filed for Chapter 11 bankruptcy

On March 4, 2025, On the Border Mexican Grill & Cantina owned by Argonne Capital Group, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District

of Georgia. According to the companies bankruptcy filing, the company operates 80 locations in the U.S. and internationally. 

On the Border has faced several financial hurdles in recent years. Higher operational costs, including rising wages and food prices have put pressure on its bottom line. Additionally, as consumers adjust their spending habits by choosing home-cooked meals over dining out, many restaurant chains are seeing a decline in foot traffic. These factors have made it difficult for the company to sustain its business model without making significant changes.

This bankruptcy filing is not an isolated incident. Many well-known restaurant brands such as Red Lobster, Denny’s, Boston Market and TGI Fridays have struggled to adapt to economic shifts, with some forced to close locations or restructure their businesses. The casual dining sector in particular has been hit hard by changing consumer preferences, inflation, and labor shortages.

As On the Border works through its bankruptcy process, the case serves as a reminder of the importance of financial stability and strategic planning. At Commercial Collection Firm of America, we help businesses manage financial challenges before they escalate, providing expert collection and recovery services to maintain cash flow and stability.

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