Yet another restaurant chain is struggling financially, and this time, it’s On the Border, the popular Tex-Mex chain based in Irving, Texas. The company has officially filed for Chapter 11 bankruptcy protection, raising concerns about the future of its locations—including the one at Sikes Senter Mall in Wichita Falls.
While the Wichita Falls location often seems busy, the broader economic challenges affecting the restaurant industry have taken a toll. Rising costs, inflation, and changing consumer spending habits have made it difficult for many chains to stay profitable.
What Does Chapter 11 Bankruptcy Mean?
Chapter 11 bankruptcy is a reorganization process, not a liquidation. According to United States Courts, businesses filing under Chapter 11 aim to:
- Restructure debts while continuing operations.
- Develop a reorganization plan to repay creditors over time.
- Avoid immediate closures, though some underperforming locations may shut down.
The good news? On the Border isn’t going out of business entirely, meaning well-performing locations—like the one in Wichita Falls—may not be at risk of closing.
Why Is On the Border Struggling?
Like many restaurant chains, On the Border is dealing with financial pressures due to:
- Rising food costs – Ingredients and supply chain costs have surged.
- Inflation – Many consumers are cutting back on dining out as prices rise.
- Increased operational costs – Rent, labor, and other expenses have grown.
- Competitive dining landscape – More restaurants and fast-casual options mean stiff competition for customers.
Even though some On the Border locations remain busy, these broader financial challenges have forced the company to seek bankruptcy protection.
Will the Wichita Falls On the Border Stay Open?
It’s too early to say whether all locations will remain open. However, Chapter 11 bankruptcy means the company will likely focus on keeping profitable locations running while closing underperforming ones.
Since the Wichita Falls location appears to have steady business, there’s a good chance it will survive the restructuring process. Still, no official closures have been announced yet, so it’s a waiting game for now.