Sixty-one Outback Steakhouse restaurants across the West could get a new operator after a San Diego-based franchisee filed Chapter 11 bankruptcy on November 2. Outback’s corporate parent, Bloomin’ Brands, has offered $26.3 million for the franchisee’s business in a proposed court-supervised sale.
The operator, Out West Restaurant Group, has restaurants in California, Arizona, Nevada, Colorado and New Mexico. Its financial troubles come as Outback faces a separate round of restaurant closures nationwide. This bankruptcy involves the independently owned franchisee, not the Outback brand or Bloomin’ Brands.
Who filed for bankruptcy?
The lead debtor is Cerca Trova Restaurant Group Holdings, Inc., doing business as Out West Restaurant Group. Four related companies also filed Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. The lead case is numbered 26-11749.
Out West traces its history to T-Bird Restaurant Group, which helped bring Outback to the West Coast. At one point, the operator ran close to 100 restaurants. It now operates 61 across five states, according to restaurant-industry reporting.
Outback’s owner said the November 2 filings would have no immediate effect on guests, employees or normal restaurant operations. Out West plans to keep serving customers while operating under bankruptcy court supervision and filed requests to pay certain bills from before the bankruptcy.
The filing does not mean all 61 restaurants are closing. Court records also mention lease-rejection requests involving already-closed restaurants, but those requests are not the same as an order shutting down the current locations.
A $26.3 million offer faces court review
Bloomin’ Brands signed its purchase agreement with Out West on November 1. The $26.3 million starting price is subject to adjustments, and the buyer would take on certain obligations, including future lease payments, unredeemed gift cards and specified amounts owed to vendors.
The company wants to be the initial, or “stalking horse,” bidder. Other buyers could submit higher or better offers, and a judge must approve any transaction. The agreement sets January 31, 2027, as an outside closing date unless the parties extend it.
In its initial proposal, Bloomin’ also offered up to $5.5 million in interest-free bankruptcy financing to help Out West cover operating expenses when needed, subject to court approval. The details appear in Bloomin’ Brands’ November 2 SEC filing.
What diners and workers should expect
For customers, the immediate message is continuity rather than a mass shutdown. Bloomin’ says Out West intends to continue operating its restaurants while the case and possible sale move forward.
Reporting on the bankruptcy put the franchisee’s workforce at nearly 3,700 people across the five Western states, more than half of them in California. No new companywide layoff total was announced as part of the filing.
If Bloomin’ wins court approval and completes the purchase, some independently operated Outback locations could become company-run restaurants. Until a transaction closes, the future ownership of those restaurants remains unsettled.
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