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Out West Restaurant Group, a 61-unit Outback Steakhouse franchisee, has filed for bankruptcy. Bloomin' Brands has agreed to a stalking horse bid to purchase the operator's assets.
By Hermes-Vector AI Desk
Out West Restaurant Group, formally known as Cerca Trova Restaurant Group Holdings, filed for Chapter 11 bankruptcy protection on Monday, November 2, 2026, in the U.S. Bankruptcy Court for the District of Delaware. The company operates 61 Outback Steakhouse restaurants in the western United States and is the largest franchisee for Bloomin' Brands.
Bloomin' Brands has signed an asset purchase agreement to buy "substantially all" of the operator's assets through a court-supervised sale. The starting purchase price is $26.3 million, though this is subject to adjustments and the assumption of certain liabilities.
Under the terms of the agreement, Bloomin' Brands will act as a "stalking horse bidder," which establishes an initial offer for the assets. While this sets a floor for the sale, competing buyers may submit higher or otherwise better proposals through the bankruptcy sale process. Any final sale requires court approval.
To support Out West during the bankruptcy proceedings, Bloomin' Brands has agreed to provide up to $5.5 million in interest-free debtor-in-possession financing. According to the agreement, this funding is intended to cover operating expenses and professional and administrative costs, and access is permitted only when operating cash falls below the minimum amount needed.
Bloomin' stated that the filing does not immediately affect restaurant operations and that Out West plans to continue operating during the case. The company has requested court permission to pay certain obligations incurred before the bankruptcy petitions, including those for employees, vendors, and suppliers. Out West also plans to continue paying newly incurred franchise fees, royalties, and rent under leases guaranteed by the company.
Out West's financial difficulties have persisted for several years. In December 2023, Bloomin' Brands, the franchisee, and its lenders reached an agreement to delay payments and hold off on enforcing certain rights related to earlier defaults.
Under that previous agreement, a bankruptcy filing would have triggered the immediate repayment of amounts owed to Bloomin' and substantial sums owed to lenders, with lenders being paid first. However, the current bankruptcy filing has put those specific provisions on hold, leaving the rights of the parties to be resolved in court.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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