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Pappas Restaurants won an auction for On The Border, the Houston-based group said in a news release on Wednesday, May 7. The deal needs court approval and is expected to be finalized "in the coming weeks."
The price wasn't mentioned in Pappas' announcement. The company previously submitted a $15.9 million stalking horse bid to buy On The Border, FSR Magazine reported in April.
If approved, the acquisition would merge two of Texas' largest restaurant companies while expanding Pappas' national presence.
"We're excited to welcome On The Border to the Pappas family," said Pappas CEO Mike Rizzo. "On The Border is a brand with deep heritage and loyal guests, and we see tremendous opportunity to invest in its future. Our shared Texas roots and passion for hospitality make this a natural fit."
Pappas operates more than 80 restaurants across nine brands, with most locations in the South or Midwest.
"On The Border has always stood out for its energy and bold flavors — it's a brand we've known and respected for years," said co-owner Chris Pappas. "This gives us the chance to bring our passion for Tex-Mex to more guests, and we're excited to build on what makes both brands special."
The purchase comes after On The Border filed for Chapter 11 bankruptcy in March. The chain cited steep revenue declines, inflation-driven costs, labor shortages, and "a dire lack of liquidity."
On The Border closed 40 restaurants before the bankruptcy filing. The company has shuttered 76 restaurants as of March, USA Today reported.
These are the On The Border locations that recently closed in the Northeast:
- Connecticut - Orange
- Maine - Portland
- Maryland - Baltimore
- Massachusetts - West Springfield, Woburn
- New Jersey - Toms River, Woodland Park
- New York - Hicksville, Holtsville
- Pennsylvania - Exton, Wyomissing
- Virginia - Fairfax, Reston, Woodbridge
At its peak, On The Border had more than 150 restaurants, including an expansion into South Korea. The chain now has 66 active US locations, according to its website.
These are the On The Border restaurants that remain open in the Northeast:
- Connecticut - Rocky Hill
- Maryland - Elkridge
- New Jersey - Mt. Laurel, New Brunswick, Paramus
- Pennsylvania - Allentown, Bensalem
- Rhode Island - Warwick
On The Border's bankruptcy filing revealed it owed $19.6 million in debt, including a bridge loan from Pappas.
"This restructuring is the best path forward for On The Border," the chain's president Chris Rockwood said in March. "It allows us to address several financial and operational challenges and emerge stronger and refocused on our growth. The support we've received from our vendors and lenders will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests."
On The Border was founded in 1982 in Dallas.
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