Tex-Mex Chain Files for Bankruptcy After Closing Third of Its Restaurants

A once-popular Tex-Mex restaurant chain has reportedly filed for Chapter 11 bankruptcy less than a month after shedding nearly a third of its locations.

Increasing Operating Costs Closing Restaurants

We're not even three months into 2025 and there's already been multiple big-name restaurant chains that have shuttered locations. Some even got things started before the beginning of the year.

Denny's closed 50 locations back in December. The chain is planning to close another 100 restaurants by the end of this year.

TGI Fridays continues to work through Chapter 11 bankruptcy proceedings. The chain has also closed multiple locations throughout the U.S. this year.

Most recently, burger chain Red Robin announced plans to close up to 70 locations in the coming months after suffering financial losses.

KEEP SCROLLING: Full List Of More Than 20 Chain Closings Below

For nearly all of these situations, the chains were finding it difficult to combat rising operating costs. Now, yet another restaurant is joining the ranks.

On The Border Restaurant Closings And Bankruptcy

The latest restaurant chain to run into issues is On The Border.

Toward the tail end of February, the Tex-Mex chain closed nearly a third of its 120 locations scattered throughout the U.S. Today, On The Border operates around 80 restaurants in addition to its branded retail items, including chips and salsa, sold in stores.

READ MORE: 15 Discontinued Fast Food Sauces We Loved Before They Were Taken Away

According to TheStreet.com, On The Border plans to sell its assets after filing for Chapter 11 bankruptcy earlier this week. The report listed a number of reasons for the filing including underperforming restaurants, labor shortages and inflation driving up menu prices.

It's a familiar tale for several struggling restaurant chains and even those in the retail sector. Here is a breakdown of big-name chains that have already closed locations in 2025 and those with plans to shutter stores before the end of the year.