On the Border parent OTB Holding has filed for bankruptcy protection in the US Bankruptcy Court for the Northern District of Georgia.

With the Chapter 11 filing, the company intends to drive operational improvements and pursue a sale of all its assets.

The company said it secured $10 million debtor-in-possession financing with Pappas Restaurants affiliate OTB Lender.

It also expects to enter into an asset purchase agreement with an OTB Lender affiliate shortly after the commencement of the Chapter 11 cases.

“This restructuring is the best path forward for On The Border,” said Chris Rockwood, the company’s president.

“It allows us to address several financial and operational challenges and emerge stronger and refocused on our growth.”

On the Border’s 80 restaurants will continue to trade as usual during the Chapter 11 process.

Late last year, TGI Fridays filed for bankruptcy under Chapter 11.