National restaurant chain On The Border closed several locations in Michigan recently as the company announced this week it has filed for Chapter 11 bankruptcy relief. While some locations are closing, others are expected to remain open as the company navigates the process.
“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,” said On The Border president Chris Rockwood. “The support we’ve received from our vendors and lenders will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests.”
Paperwork filed Wednesday in U.S. Bankruptcy Court in the Northern District of Georgia shows the company is asking for permission to reject leases at 77 locations that were determined to drive losses. Included in those proposed lease rejections are four locations in Michigan that have already closed.
The four closed restaurants are located at:
- 3930 Baldwin Rd. Auburn Hills.
- 12383 James St. Holland.
- 21091 Haggerty Rd. Novi.
- 35613 Warren Rd. Westland.
According to the On The Border website, the company still operates three locations in Michigan, with restaurants in Allen Park, Grandville and Kentwood. On The Border says 60 restaurants will continue remain open in the U.S.
While On The Border is closing dozens of locations, the company says it plans on using the bankruptcy proceedings “to drive operational improvements and pursue a sale of substantially all of its assets.” The company says it is expected to enter into an asset purchase agreement with an affiliate once the bankruptcy commences.
The closings add to the list of major retailers and restaurants that have announced location closings recently. Red Lobster, Joann, Red Robin, Macy’s and others have shuttered locations or announced impending closures in Michigan within the last year.
