Big restaurant chain with 4 NJ locations, 2 in PA files for bankruptcy

A big restaurant chain with four locations in New Jersey (it was five just a few days ago) and two in Pennsylvania has now filed for Chapter 11 bankruptcy protection.

This news comes as seemingly countless businesses, big and small, struggle in 2025. Some examples include the following:

On The Border files for bankruptcy

Now comes word that On The Border Mexican Grill & Cantina has voluntarily filed for bankruptcy protection.

A press release on their website said,

OTB Holding LLC...owner of the On The Border chain of Tex-Mex restaurants, announced today that it has voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Georgia. The Company intends to use the proceedings to drive operational improvements and pursue a sale of substantially all of its assets.

The company closed over a dozen underperforming restaurants over the past week or so, including their restaurant in Toms River. About 60 remain open across the country and the company hopes to keep them afloat.

On The Border locations in New Jersey

• Route 17, Paramus
• Route 1, New Brunswick
• Route 1, Princeton
• Church Rd., Mt. Laurel

On The Border locations in Pennsylvania

• Neshaminy Mall, Bensalem
• Airport Center Dr., Allentown

Restaurant Business Online reports the chain began having financial issues in 2008 and then struggled through the COVID-19 pandemic. After bouncing back in 2021 and 2022, sales were down in 2023.

FastCompany.com, citing court documents, says the chain has about 2,800 workers across the country with most of them being part-time hourly workers.