Tex-Mex chain On the Border files for Chapter 11 bankruptcy protection

On the border, Mexican Grill & Cantina applied for bankruptcy this week as she fought to compete in the macroeconomic environment.

The TEX-MEX series, owned by the Argonne Capital group, applied for bankruptcy protection in Chapter 11 in the bankruptcy court in the United States of the northern region of Georgia earlier this week after closing 40 sites. According to bankruptcy deposit, the company runs 80 locations in the United States and internationally.

Like its competitors, the company said it has witnessed a decrease in traffic in recent years, has struggled to keep workers and has increased costs with a high minimum wage, according to Associated Press.

Fox Business has arrived at the Argonne Capital for comment.

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It is the latest in a An increasing number of major restaurant chains That was submitted to protect at the bankruptcy court after struggling to manage the heavy debt that she accumulated during the Covid-19 pandemic. This will not be the last, according to bankruptcy lawyer Daniel Gilsinsky, who is expected to have more restaurants in providing more restaurants for protection in the coming years.

On the border of the Mexican grill at dusk. (Geoffrey Greenberg Group / Universal Pictures via Getty Images / Getty Images)

Tgi Frady’s, Denny’s, Ruby Tuesday, Rubio’s Coastal Grill and Red Lobster have been provided for protection in the bankruptcy court in recent years, as HOOTERS of America is likely to join the list. The company is considering submitting a bankruptcy request as a way to restructure restaurants chain and address its debts.

The industry expected consumers to spend in restaurants to return to prenatal levels as soon as things return to normal. but Fast service sector It has begun to slow traffic in consecutive places with consumers who often take inflation at home.

Hooters of America is said to consider submitting a bankruptcy request as a way to restructure restaurants chain and address their debts. (Michael P. Farrell / Albany Times Union via Getty Images / Getty Images)

HOOTERS looking at the possible bankruptcy file

“Customers never return to their full strength” due to the changes in their habits and the ability to spend, which means that the revenues of the upper line have never rose and restaurants that suffer from debt were able to pay these loans, according to Gilchinski.

Some companies that have not been submitted for bankruptcy have greatly reduced their mark to better put themselves in the current environment and pushing traffic customers to their restaurants.

Reed Robin recently announced this week that it is also considering closing 70 sites as soon as the lease contract expires while trying to turn his operations.

Customers at a restaurant in the ferry building in San Francisco on May 31, 2024. (David Paul Morris / Bloomberg via Getti Imachurs / Getty Pictures)

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The company plans to sell three real estate during the first quarter of the fiscal year 2025. It is expected that the sale of these sites will generate $ 5.8 million, which the company expects partially to pay for its debts.

While the financial results for the 2024 fiscal year “decreased well” from the company’s original expectations, CEO GJ Hart said that the company had made “significant improvements to the guest’s experience” to try to restore traffic to its restaurants.

Fast food series Windy closed 140 weak sites During the end of 2024, he looks forward to improving “restaurant imprint and comprehensive system health”.