(wjet/wfxp) – At the border, a casual Tex-Mex dining chain filed for Chapter 11 bankruptcy this week.
The company is currently open 60 locations Throughout the US, these locations are expected to remain open and operational during the process.
According to Court documentsborders report assets and liabilities of between $10 million and $50 million. a press release He said he received $10 million in funds from the company to ensure continuous operation during the Chapter 11 process. The company also said it intends to enter into an asset purchase agreement with the affiliate company in the coming weeks.
Court documents revealed that the company spent $25.3 million on lease payments in 2024.
According to Bloomberg, The company has seen “rapid losses in liquidity” in recent months, urging people not to pay certain bills. This inevitably led to vendors and landlords cutting off their products and services. The chain also closed around 40 locations within the past few months.
Court documents show that the company is seeking court approval for permission to continue its customer compensation program, not only to continue paying employees.
“This restructuring is the best path at the border. Chris Lockwood, president of the company, said:
At the border, they are on an increasing list of foodservice companies that have closed locations across the country or filed for bankruptcy protection in the past year.
The most notable of these bankruptcies include TGI Friday, Red Lobsterand Buca di beppo. Many of these cited similar shortages following the slump caused by the Covid-19 pandemic, including increased inflation and labor costs and major changes in customer spending habits.
Founded in Dallas in 1982, the border features over 80 restaurants in the US and South Korea, opening its first location 18 years ago. It is currently owned by Atlanta-based investment company Argonne Capital Group. It also operates Applebee, IHOP, Wingstop Restaurant, and Planet Fitness and other franchises following its acquisition from Golden Gate Capital in 2014.
