Introduction to Pappas Restaurants and On The Border
Pappas Restaurants, a Houston-based company, has made a significant move by positioning itself to purchase On The Border Mexican Grill & Cantina, a chain that filed for bankruptcy earlier this month. On The Border, headquartered in the Dallas area, has been a well-known name in the Tex-Mex restaurant scene since its opening in 1982.
Background on On The Border’s Bankruptcy
On The Border filed for chapter 11 bankruptcy in a federal court in Atlanta, Georgia, and received millions in financing from OTB Lender LLC, an affiliate of Pappas Restaurants. This financing will help On The Border cover costs associated with its bankruptcy filing. As a stalking-horse bidder, OTB Lender LLC provided the initial bid for purchasing On The Border’s assets.
Details of the Potential Acquisition
According to court filings and a news release from On The Border, the company anticipates entering into an asset purchase agreement with an affiliate of OTB Lender, LLC. This agreement is expected to be made shortly after the commencement of the Chapter 11 cases. Pappas Restaurants did not respond to a request for comment on the potential acquisition.
About On The Border and Pappas Restaurants
On The Border has a total of 80 locations in the United States and internationally, but does not operate in the Houston area. Pappas Restaurants, on the other hand, is a longtime staple in the Houston region, with well-known eateries such as Pappasito’s Cantina, Pappadeaux Seafood Kitchen, and Pappas Bar-B-Q. The company has opened more than 100 restaurants and operates in Texas and seven other U.S. states.
Recent Developments for Pappas Restaurants
In a separate development, Pappas Restaurants recently moved out of Hobby Airport in Houston after a judge denied a temporary restraining order against the City of Houston. This move has not affected the company’s plans to expand its operations through the potential acquisition of On The Border.
Conclusion
The potential acquisition of On The Border by Pappas Restaurants marks a significant development in the restaurant industry. With its strong presence in the Houston region and beyond, Pappas Restaurants is well-positioned to expand its operations and bring its brand of Tex-Mex cuisine to new locations. As the details of the acquisition become clearer, it will be interesting to see how this move affects the restaurant landscape in the United States and internationally.
