Popular Tex-Mex restaurant chain files for bankruptcy
Published On Mar 6, 2025, 3:49 PM
On the Border Mexican Grill & Cantina has filed for Chapter 11 bankruptcy protection after closing 40 of its locations due to declining customer traffic and increased operational costs. The chain, owned by Argonne Capital Group, currently operates 80 locations. This move follows a trend where several restaurant chains, including TGI Friday's and Red Lobster, have also filed for bankruptcy as they struggle to recover from the effects of the COVID-19 pandemic and changing consumer habits.
Stock Forecasts
EAT
Negative
The filing for bankruptcy by On the Border signals ongoing troubles in the restaurant industry, particularly for chains that have not adapted to the current economic conditions. Investors should closely monitor the restaurant sector for potential fixed-income investment opportunities as some companies may see restructuring lead to greater efficiency and profitability in the long term. However, caution is advised due to the instability predicted in similar chains.
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