Pappas Restaurants preparing to buy On The Border out of bankruptcy

Pappas Restaurants, a Texas-based, family-owned concern founded successful 1897, is preparing to get On The Border Mexican Grill & Cantina, aiming to facilitate the Tex-Mex edifice chain's emergence from bankruptcy, arsenic reported by Bloomberg.

On The Border was established successful Dallas successful 1982 and operates successful 80 locations crossed the US and South Korea.

Pappas Restaurants, the genitor of brands Pappas Bros. Steakhouse, Pappas Bar-B-Q and Pappadeaux Seafood Kitchen, has submitted a bid successful the bankruptcy tribunal merchantability process.

Court documents amusement an affiliate of Pappas Restaurants arsenic the lender of the caller span and different financing to the bankrupt company.

The filings suggest that this lender is apt to enactment arsenic a stalking-horse bidder, efficaciously positioning itself arsenic the superior purchaser if nary competing offers materialise.

Representatives for some On The Border and Pappas Restaurants person not commented.

In aboriginal March 2025, On The Border, which filed for bankruptcy extortion successful the US Bankruptcy Court for the Northern District of Georgia, faced rising labour costs, declining lawsuit visits and inflationary pressures.

Its president Chris Rockwood stated: “This restructuring is the champion way guardant for On The Border. It allows america to code respective fiscal and operational challenges and look stronger and refocused connected our growth.

“The enactment we’ve received from our vendors and lenders volition assistance guarantee that we tin implicit the merchantability process rapidly and efficiently portion remaining focused connected our employees and guests.”

The Pappas household presently manages 9 chiseled eating brands.

On The Border opened its archetypal edifice successful South Korea successful 2007. At its highest successful 2010, the concatenation had 160 locations.

According to BankruptcyData, edifice companies and franchisees filed for recognition extortion successful 2024 astatine rates not observed since 2020.

In November, casual eating concatenation TGI Friday’s filed for Chapter 11 of the US Bankruptcy Code successful the Northern District of Texas.

"Pappas Restaurants preparing to bargain On The Border retired of bankruptcy" was primitively created and published by Verdict Food Service, a GlobalData owned brand.

The accusation connected this tract has been included successful bully religion for wide informational purposes only. It is not intended to magnitude to proposal connected which you should rely, and we springiness nary representation, warranty oregon guarantee, whether explicit oregon implied arsenic to its accuracy oregon completeness. You indispensable get nonrecreational oregon specializer proposal earlier taking, oregon refraining from, immoderate enactment connected the ground of the contented connected our site.