Pappas Restaurants Acquires On the Border in Bankruptcy Court Auction
In a move that promises to preserve the legacy of the popular dining chain, Houston-based Pappas Restaurants has won a bankruptcy court auction to acquire On the Border, a renowned Tex-Mex restaurant chain with 80 locations, including 60 company-owned eateries. This significant announcement was made late Wednesday.
Founded in 1982 in Dallas, On the Border is well-known for its vibrant Tex-Mex offerings, including fajitas, margaritas, and dishes garnished with queso. While the disclosed bid price remains under wraps, the acquisition comes at a critical time for On the Border, which filed for bankruptcy protection in March, citing over $25 million in debt along with more than 10,000 creditors. The company has witnessed a dramatic decline in locations, shrinking from over 160 to its current count.
Chris Pappas, co-owner of Pappas Restaurants, expressed enthusiasm about the acquisition, stating, "On The Border has always stood out for its energy and bold flavors—we’re excited to build on what makes both brands special." Pappas Restaurants, which is prominent for its Tex-Mex and barbecue offerings, views this acquisition as an opportunity to further enhance On the Border’s services and menu while respecting its storied heritage.
Pappas’ CEO Mike Rizzo echoed similar sentiments, highlighting the deep-rooted connections Pappas has with Texas and its commitment to hospitality. He noted, “We see tremendous opportunity to invest in its future," indicating a focus on elevating guest experiences at the chain.
As On the Border officially joins the Pappas family, there are plans to explore enhancements that honor its beloved menu while rejuvenating the overall dining experience for loyal patrons.
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