Outback Franchisee Files Chapter 11, Puts 61 Restaurants Up for Sale
Out West Restaurant Group, which runs 61 Outback Steakhouse restaurants, filed Chapter 11 on Nov. 2. Bloomin' Brands bid $26.3 million for its assets.
A franchisee that runs Outback Steakhouse restaurants in five states has filed for Chapter 11 bankruptcy, and its 61 restaurants are now up for sale. Cerca Trova Restaurant Group Holdings, which does business as Out West Restaurant Group, filed on Nov. 2 in the U.S. Bankruptcy Court for the District of Delaware, according to court records cited by USA TODAY.
Outback’s parent company, Bloomin’ Brands, has agreed to make an initial $26.3 million offer for Out West’s assets, including the restaurants it still operates. If the court approves the deal, the chain’s owner would run those locations directly.
Outback itself is not bankrupt
The filing covers one franchise operator, not the Outback brand. As of June 2026, Outback had approximately 659 U.S. restaurants, Bloomberg reported: 544 run by the company and 115 run by franchisees. The 61 Out West restaurants make up more than half of those franchised locations.
Bloomin’ Brands is headquartered in Florida and also owns Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.
Which states are affected
The restaurants in the filing are in western states. Earlier closures of Out West locations hit Arizona, California, Colorado and Nevada, according to Yahoo Finance and USA TODAY. No Florida restaurants are part of the case.
Out West had already closed several restaurants before the filing. USA TODAY reported that the group’s financial trouble goes back to 2018, with fewer customers coming in while food and labor costs rose.
What Chapter 11 means here
Chapter 11 is often called “reorganization bankruptcy.” It lets a business keep operating while it works out a plan to restructure its finances and pay creditors over time. The IRS describes it as used mainly by incorporated businesses.
The period between the filing and court confirmation of a repayment plan is when the debtor reorganizes. If that fails and no plan is approved, the IRS says the case may be converted to Chapter 7, which means liquidation.
What it means for diners, workers and the brand
For customers in the affected western states, the outcome of the sale decides who runs their local Outback. Bloomin’ Brands’ offer is described as an initial bid, so the final buyer and price are not settled. If Bloomin’ Brands wins and the purchase is approved, more than half of Outback’s U.S. franchised restaurants would come under the parent company’s direct control.
Out West did not disclose how many employees work at the 61 restaurants, and no timeline for a court ruling on the sale has been reported. The next step to watch is the bankruptcy court’s review of the bid for Out West’s assets.
Source: Yahoo Finance
