Bloomin' Brands agrees to buy 61 Outback restaurants from Chapter 11 franchisee for $26.3 million

The bid and the bankruptcy case

Bloomin' Brands is expected to serve as the "stalking-horse" bidder in a court-supervised sale, an opening offer that other potential buyers can try to exceed. It also agreed to provide up to $5.5 million in interest-free debtor-in-possession financing to keep Out West operating through the Chapter 11 case, subject to court approval. Both the transaction and the financing need bankruptcy court approval.

Who filed and what the filing shows

Out West Restaurant Group, which is affiliated with Cerca Trova Restaurant Group, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware on 2 November, according to a Securities and Exchange Commission filing. Fox Business named Out West as the debtor. Bloomberg Law, in a report carried by Yahoo Finance, named Cerca Trova Restaurant Group Holdings, an affiliated entity, and reported the asset and liability figures.

Bloomberg Law described Cerca Trova as Outback's largest domestic franchisee, operating approximately 60 Outback Steakhouse restaurants across California, Arizona, Nevada, Colorado and New Mexico. Fox Business reported the proposed sale covers 61 restaurants. The first figure is an approximation; the second is the count in the sale agreement. Cerca Trova was founded in 1994, is backed by funds from H.I.G. Capital and previously operated as T-Bird Restaurant Group.

Bloomberg Law reported that the filing listed less than $50,000 in assets and between $100 million and $500 million in liabilities. The $26.3 million purchase price covers assets and specified liabilities assumed in the deal, not that full liability range.

What changes for diners and staff

Bloomin' Brands said the filing would have no immediate impact on customers, restaurant employees or daily operations at the affected Outback locations. Out West intends to continue operating its restaurants throughout the bankruptcy process, according to the SEC filing. The case covers restaurants run by the franchisee, not Bloomin' Brands' corporate-owned sites.

Wide Open Country reported that the situation was described as "an isolated situation involving the franchisee" and that it "does not affect Bloomin' Brands' corporate operations, financing, or liquidity." If Bloomin' prevails, the restaurants could move from franchisee control to the parent company.

Why the franchisee filed

Cerca Trova cited reduced foot traffic, a slow pandemic recovery, rising food prices and unexpected labor costs, according to the New York Post, as quoted by Wide Open Country. Chief executive David Goronkin said guest traffic and earnings continued to decline while food, labor and other production costs kept rising. Wide Open Country also reported that a California court recently settled a $1.6 million wage-and-hour class action against the company over alleged failures to pay overtime and minimum wages.

The filing comes after Bloomin' Brands closed more than 40 underperforming locations in 2026 as part of a turnaround strategy that also involved digitizing more of the ordering process and focusing more on customer experience. Outback had roughly 670 US locations and more than 1,000 worldwide as of 2026. The 61 restaurants in the proposed sale are less than a tenth of the US estate.

What happens next

The bankruptcy court must approve the transaction and the financing. Higher bids can still emerge at the auction.