On The Border Files for Liquidation Two Years After Rescue Deal

OTB Hospitality, the operating entity of On The Border Mexican Grill & Cantina, filed for Chapter 7 liquidation on June 19, 2026, in Texas. This marks the second bankruptcy for the brand in roughly two years—Pappas Restaurants acquired it from the prior bankruptcy in 2024. Chapter 7 means no restructuring: a court-appointed trustee will liquidate assets and close locations. Sequential distress events suggest structural demand erosion that a change of ownership could not fix.