Another one bites the dust, as they say. And unfortunately, there are less margaritas in the world today than yesterday. On The Border Mexican Grill & Cantina has filed for Chapter 11 bankruptcy protection.
And yes, the On the Border restaurant in Buckhead on the Buckhead Loop closed abruptly on March 6, 2025. You’ll have to go elsewhere for the best Mexican food in Atlanta.
On The Border Closes in Atlanta; Company Files Bankruptcy
The filing occurred on March 4, 2025, in the Georgia Northern District Bankruptcy Court. This actifollows a period of financial difficulty attributed to escalating labor costs, decreasing customer traffic, and inflationary pressures, leading to a “rapid loss of liquidity” in recent months.
The company, owned by Atlanta-based OTB Holding (an affiliate of Argonne Capital Group), reported assets and liabilities ranging between $10 million and $50 million.
Which On the Border Locations Are Closing?
Additionally, On The Border had closed more than a dozen locations across the United States in the weeks leading up to the bankruptcy filing, reducing its footprint to approximately 66 locations as of March 2025, from over 120 at the end of 2023.
Confirmed Closures in 2025:
- Ahwatukee Foothills Towne Center, Phoenix, AZ – Closed permanently before February 25, 2025.
- 5005 E Ray Rd, Phoenix, AZ – Listed as permanently closed by February 25, 2025.
- Mesa, AZ – Reported closed by March 1, 2025, as part of the Arizona shutdowns.
- Peoria, AZ – Reported closed by March 1, 2025, as part of the Arizona shutdowns.
- Woburn, MA – Closed permanently by February 25, 2025; the last Massachusetts location.
- West Springfield, MA – Closed shortly before February 25, 2025.
- Columbus, OH (4175 Morse Crossing) – Closed by February 26, 2025; the only Ohio location.
- Lubbock, TX (6709 Slide Road) – Closed permanently on February 8, 2025.
- West Des Moines, IA (Jordan Creek Town Center) – Closed permanently by February 25, 2025.
- Orange, CT – Closed permanently by February 28, 2025, amid national shutdowns.
- Long Island, NY (both locations) – Closed permanently in February 2025.
- Biloxi, MS – Last Mississippi location closed permanently by March 6, 2025.
- All Georgia Locations – Closed by March 6, 2025, as reported in connection with the bankruptcy filing.
What Is a Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is a form of bankruptcy protection under the U.S. Bankruptcy Code that allows a business (or, less commonly, an individual) to reorganize its debts and operations while continuing to operate, rather than shutting down entirely. It’s often referred to as a “reorganization bankruptcy” and is designed to give a struggling company a chance to restructure its finances, reduce debt, and emerge as a viable entity. Here’s a breakdown of what it entails:
Key Features of Chapter 11 Bankruptcy:
- Reorganization, Not Liquidation:
- Unlike Chapter 7 bankruptcy, where a business typically closes and its assets are sold off to pay creditors, Chapter 11 focuses on keeping the business alive. The debtor proposes a plan to restructure its debts and operations, aiming to return to profitability.
- Debtor-in-Possession:
- In most cases, the company filing for Chapter 11 (the “debtor”) retains control of its operations as a “debtor-in-possession” (DIP). This means management continues to run the business under the oversight of the bankruptcy court, rather than a trustee taking over.
- Filing Process:
- The process begins when the debtor files a petition with a bankruptcy court, either voluntarily or, in rare cases, involuntarily (forced by creditors). The filing includes detailed financial statements, lists of assets, liabilities, and creditors.
On The Border closed more than a dozen locations in the weeks leading up to its bankruptcy filing on March 4, 2025. The chain’s operational footprint dropped from over 120 locations at the end of 2023 to approximately 66 by March 5, 2025, indicating significant closures beyond those individually listed above. However, exact addresses for all closures are not universally specified in available reports.
Arizona Closures: Reports indicate that most, if not all, Arizona locations closed by early 2025, though only Phoenix, Mesa, and Peoria are explicitly named.
Georgia Closures: All Georgia locations were shuttered by the time of the bankruptcy filing, though specific cities are not detailed in the provided data.
Ongoing Process: The Chapter 11 filing suggests further closures may occur in 2025 as the company reorganizes, but no specific “planned closures” beyond March 6, 2025, have been publicly confirmed at this point.
Final Word
The closing of On the Border locations is a sad one but it aligns with a broader trend of casual-dining chains, such as Red Lobster, TGI Fridays, and Buca di Beppo, seeking bankruptcy protection over the past year amid challenging market conditions.
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