One Of Texas’ Most Popular Tex-Mex Chains is Bankrupt, Now Closing Stores

It is tough to be in the restaurant business these days. Whether you are a mom-and-pop local restaurant or a national chain restaurant, these are definitely tough times for you. Major issues that restaurants face are attracting and retaining a loyal customer base and employees.

The parent company of a well-known Tyler and Longview Mexican food restaurant filed for bankruptcy on Tuesday in Atlanta. This bankruptcy filing follows a long list of other companies that have filed for bankruptcy protection, including Red Lobster in 2024 and Ruby Tuesday, Red Robin, Denny's, TGI Friday's, and Joann Fabrics in February 2025. In some instances, locations were closed, and others were spared, or the entire company was closed down.

On The Border files for bankruptcy

The Dallas Morning News reports that On The Border Mexican Grill & Cantina has filed for bankruptcy protection. The two major reasons for this filing are inflation and the fact that customer habits have changed.

The company states that customers' dining habits have changed because inflation affecting restaurants has outpaced grocery prices, and this has affected their menu drastically. In addition, the wide variation of minimum wages per state and on the local competitive level has made it hard for them to retain employees.

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On The Border attempted to avoid bankruptcy

Over the last month, the chain tried reducing debt and its footprint by closing 40 of its underperforming locations. According to the Associated Press, the company still operates 60 restaurants across 18 states, including locations in Texas. These locations are expected to remain open during the bankruptcy proceeding.

The company reveals that a complete sale of its assets is looming.

As it is now, the Tyler and Longview locations remain open, serving up some great Mexican food.  Only time will tell what's in store for these locations and an iconic Texas restaurant.