Mexican Chain With Las Vegas Location Declares Chapter 11 Bankruptcy

It’s no secret that the cost of living has increased dramatically in recent years and is beginning to affect more and more individuals and businesses. You’ve probably seen headlines of several major corporations, especially restaurants, filing for bankruptcy lately. Another Mexican eatery has joined this long list, and the chain has one location in Las Vegas- On The Border Mexican Grill & Cantina. It is located at 5630 Centennial Center Boulevard. On The Border had 60 locations nationwide before it began closing locations in February 2025. However, the chain was forced to declare chapter 11 bankruptcy in March 2025, citing more than $19 million in debt. Restructuring Officer Jonathan Tibus cited four causes for the filing:

Difficult economic conditions;
Labor shortages;
Underperforming restaurants; and
Creditor enforcement actions

Some of these factors sound quite similar to economic pressures the average individual currently faces. Financial pressures become even worse when businesses close and employees lose their jobs. And just like businesses can use bankruptcy to protect themselves from creditors and turn around their financial situations, so can individuals. If you’re seeking relief from burdensome debt in the Las Vegas area, you can walk through your bankruptcy options with our firm with no risk or obligation. Schedule your free consultation today by calling 702-842-0700.

Attorney discussing Chapter 11 Bankruptcy with legal scales in the office

Other Recent Restaurant Bankruptcy Cases

On The Border is just one of so many restaurants that have been forced to declare bankruptcy due to post-pandemic market pressures. When the cost of everything increases, it is harder to keep fresh ingredients stocked, quality employees on bankroll, etc. Some of the other restaurants that have declared bankruptcy that you may have heard of include:

Red Lobster: This was probably the most talked-about bankruptcy filing of 2024. Not even the country’s most preeminent hype man, Flavor Flav, could save this seafood chain from bankruptcy. Many attributed Red Lobster’s filing to an all-you-can-eat shrimp deal gone wrong, but there were many other factors that led to this famous bankruptcy. It closed several of its 650 locations to increase profitability through chapter 11.
Rubio’s Coastal Grill: Like On The Border, this chain focuses on fast-casual Mexican fare. Rubio’s closed dozens of locations before filing a chapter 11 bankruptcy petition in June 2024. It had previously filed chapter 11 bankruptcy in 2020. Rubio’s blamed its bankruptcy filing on a California law increasing the minimum hourly wage for employees of large restaurant chains.
Buca Di Beppo: This Italian chain joined the long list of restaurants that declared bankruptcy in 2024. Customer demand declined during the pandemic and never recovered to where it was before COVID-19. It entered chapter 11 bankruptcy with north of $10 million in debt, with $1.36 million of that being in unredeemed gift cards. Its initial bankruptcy plan was to close 18 locations to keep an additional 44 locations running.
TGI Friday’s: One thing you might notice that all these bankrupt restaurant chains have in common is that they are all on the more casual end. Like the other restaurants on this list, TGI Friday’s was pressured into bankruptcy by factors brought about by the COVID-19 pandemic. The chain started with around 270 locations before the bankruptcy, and currently operates about 160 locations nationally and across the globe.
World of Beer: After being in business since 2007, this chain specializing in alcoholic beverages was forced to file for chapter 11 bankruptcy in August 2024. It shuttered 14 of its 34 locations in response to rising costs. However, it was able to use its bankruptcy filing to shed tens of millions in debt to re-emerge as a business with a promising future. The owners plan to expand by 4 to 5 locations per year for as long as possible.

Starting The Bankruptcy Process In Las Vegas

If a debtor files a haphazard bankruptcy petition without thorough research, their case will be at risk of dismissal and other negative consequences. The initial steps you take can have lasting effects, even after your case is complete. Some things to keep in mind as you start the bankruptcy process in Las Vegas include:

Calculate your household income accurately: Your household income is one of the most important factors that determines whether you are eligible for chapter 7 bankruptcy and chapter 13 bankruptcy. If your spouse is employed, their income will also count towards your household income for bankruptcy purposes. Your average monthly income is determined based on the past six months. You also need to include income from other sources, because it could have serious consequences if uncovered during your case. Consulting with a chapter 7 bankruptcy lawyer or a chapter 13 bankruptcy lawyer can help ensure you include all necessary income details in your filing.
Getting your government-issued IDs ready: The information you provide in your bankruptcy petition needs to match what is on your Social Security card. You will also need to present your driver’s license or other form of photo ID when you attend your 341 Meeting of Creditors. Because requesting new copies of either of these can be a lengthy process, we recommend having them ready before filing your bankruptcy petition.
Complete your first online credit counseling course: Whether you file for chapter 7 or chapter 13, you will be required to take two online courses to discharge your debts in bankruptcy. You must include your first course completion certificate when you file your bankruptcy petition in court. Your first course certificate is valid for up to 180 days after completing the course. You should set aside about 1.5 hours to complete the course, and expect to pay a nominal fee for your participation. We recommend taking this course well in advance of your filing in case any emergency situations occur that require a fast filing.
Watch your credit card spending: There are limits on luxury purchases and cash advances in the months leading up to a bankruptcy filing. If you exceed these limits, your debts could be excluded from discharge. If you are unsure about whether your pre-bankruptcy purchases would be approved by the trustee, discuss them first with your zero down bankruptcy attorney.
Start working on your household inventory: You can’t protect your assets in bankruptcy if you don’t apply exemptions to them. One of the most tedious exemptions to apply in your petition is your household goods and furnishings exemption. You can begin creating a household inventory of your possessions for this exemption in advance to reduce stress during your filing.

Experienced Legal Representation For Your Las Vegas Bankruptcy Filing

Despite being staffed with some of the best in-house counsel in the country, major corporations typically still hire dedicated legal representation when they file for bankruptcy. There are countless moving parts to bankruptcy that are difficult to navigate without specialized knowledge and experience. There are even different rules that apply in different jurisdictions, meaning that if you’ve heard about filing for bankruptcy from a friend or family members, your case could have unexpected results. Make your decision about discharging debts through bankruptcy with thorough information and confidence- and if our firm is a fit for you, a skilled zero down bankruptcy lawyer with payment plan options starting at Zero Dollars down. We offer consultations by phone free of charge, so what do you have to lose besides your debt? Schedule your free consultation today at 702-842-0700.