Tex-Mex chain On the Border files for bankruptcy protection

On the Border Mexican Grill & Cantina has filed for bankruptcy protection, citing pressure from inflation and changing customer behavior.

The chain, which is owned by Atlanta-based Argonne Capital Group, filed Tuesday in federal bankruptcy court in northern Georgia. It joins several other casual chains that have filed for bankruptcy protection over the last year, including Red Lobster and TGI Fridays.

In court papers, On the Border said customers dined out less in recent years as restaurant inflation outpaced grocery prices. The chain said rising minimum wages in many states also added to its costs, and it has struggled to recruit and retain workers.

Last month, On the Border closed 40 locations. It still operates 60 restaurants in 18 states, which will remain open while the bankruptcy proceeds. Franchisees run an additional 20 restaurants in the U.S. and South Korea, the company said.

On the Border said it expects to complete a sale of its assets soon.

On the Border opened its first restaurant in Dallas in 1982. In 1994, it was acquired by Chili's owner Brinker International, which began opening franchised locations. By 2001, On the Border had more than 100 restaurants in the U.S. It expanded into South Korea in 2007.

Brinker sold On the Border to Golden Gate Capital in 2010, and Golden Gate sold the chain to Argonne in 2014.