On the Border Restaurant Chain Files for Bankruptcy

Many states raised their minimum hourly wages last year, putting additional pressure on the restaurant industry.

A person arrives at the U.S. District Bankruptcy Court for the Southern District of New York in Manhattan, New York, on Jan. 9, 2020. Brendan McDermid/Reuters

Restaurant chain On the Border is going bankrupt after factors such as inflation and labor costs reportedly weighed down the company’s finances.

Atlanta-based OTB Holdings LLC, owner of the On the Border Mexican Grill & Cantina chain of Tex-Mex restaurants, has “voluntarily filed for relief under Chapter 11 of the Bankruptcy Code” in a Georgia court, the company said in a March 5 statement.