National restaurant chain On The Border has recently announced the closure of several locations in Michigan as part of its Chapter 11 bankruptcy filing. This significant decision comes as the company aims to restructure its operations and improve its financial standing. While some restaurants are shutting down, others are expected to remain operational as On The Border navigates this challenging phase.
On The Border's president, Chris Rockwood, stated, “This restructuring is the best path forward for On The Border. It allows us to address several financial and operational challenges and emerge stronger and refocused on our growth.” The company has emphasized the support received from vendors and lenders, which they believe will be crucial in facilitating a quick and efficient sale process while prioritizing their employees and guests.
On Wednesday, paperwork was filed in the U.S. Bankruptcy Court for the Northern District of Georgia. The documents reveal that On The Border is seeking permission to reject leases for 77 locations that have been identified as financially unviable. Among these proposed lease rejections are four specific locations in Michigan that have already ceased operations:
3930 Baldwin Rd, Auburn Hills 12383 James St, Holland 21091 Haggerty Rd, Novi 35613 Warren Rd, WestlandDespite these closures, On The Border still operates three locations in Michigan, specifically in Allen Park, Grandville, and Kentwood. The company has confirmed that a total of 60 restaurants will continue to remain open across the United States during this restructuring process.
While On The Border is closing numerous locations, the company is optimistic about using the bankruptcy proceedings to implement operational improvements and to pursue a sale of substantially all of its assets. They anticipate entering into an asset purchase agreement with an affiliate once the bankruptcy process officially begins.
The closures of On The Border restaurants add to a growing list of major retailers and restaurants that have announced location shutdowns in Michigan over the past year. Notable names such as Red Lobster, Joann, Red Robin, and Macy’s have also shuttered locations or revealed plans for impending closures, reflecting a challenging landscape for the restaurant and retail industry.
