The company that runs 61 Outback Steakhouse restaurants across the West just filed for bankruptcy, and its own franchisor is stepping in to try to buy the whole operation.
Quick Take
- Cerca Trova Restaurant Group Holdings, doing business as Out West Restaurant Group, filed for Chapter 11 bankruptcy protection in Delaware.
- Out West runs 61 Outback Steakhouse locations across California, Arizona, Nevada, Colorado, and New Mexico.
- Bloomin’ Brands, Outback’s parent company, agreed to buy Out West’s assets for $26.3 million as the lead bidder.
- The deal is not final. Bankruptcy court rules allow other buyers to submit higher offers before any sale closes.
A Major Franchisee Hits The Wall
Bloomin’ Brands disclosed the bankruptcy in a filing with the Securities and Exchange Commission on November 2, 2026. The filing identifies Cerca Trova Restaurant Group Holdings, Inc., operating as Out West Restaurant Group, as an independently owned franchisee that filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware. The company and its subsidiaries operate 61 Outback Steakhouse restaurants spread across five western states.
Chapter 11 does not mean a business shuts its doors overnight. It means a company asks a court for protection from creditors while it reorganizes debt or sells assets in an orderly way. For Out West, that path leads toward a sale, not a shutdown, at least for now.
Outback’s Parent Steps In As The Buyer
Bloomin’ Brands agreed to purchase substantially all of Out West’s assets for a base price of $26.3 million. That price can change based on adjustments and liabilities the buyer agrees to take on. Importantly, Bloomin’ Brands is acting as a stalking-horse bidder, meaning it set the floor price but other buyers can still outbid it in court.
Several headlines already describe this as Bloomin’ Brands buying the restaurants outright. That framing jumps ahead of the facts. The agreement still needs bankruptcy court approval, and the court’s bidding process could bring in a competing offer that changes the outcome entirely.
Money To Keep The Lights On During The Case
Bloomin’ Brands also agreed to provide up to $5.5 million in debtor-in-possession financing, a type of loan that lets a bankrupt company keep paying bills while the case moves forward. This financing carries no interest and still needs court approval, but it’s meant to keep Out West’s restaurants running during the proceedings.
That financing detail matters because it shows Bloomin’ Brands has skin in the game well beyond just bidding on assets. The company is both the franchisor whose brand name is on every restaurant and the proposed buyer and lender keeping those same restaurants afloat during bankruptcy.
Part Of A Bigger Industry Squeeze
Out West’s filing fits a pattern playing out across the restaurant industry. Chapter 7 and Chapter 11 filings among restaurants jumped 142.9% in 2024 after staying fairly stable the three years before. By mid-2026, at least ten multi-unit restaurant franchisees had already sought bankruptcy protection, more than during all of the previous year combined.
Rising costs for labor, food, rent, and debt have squeezed operators across casual dining, not just at Outback. Total U.S. business bankruptcy filings climbed about 17% year over year through June 2026, and some analysts say restaurant filings could outpace even pandemic-era levels.
What Customers And Workers Should Expect Now
Bloomin’ Brands has said there’s no immediate impact on guests or workers at Out West locations. Restaurants keep serving steaks and operating as normal while the court process plays out. That assurance covers the short term. It does not guarantee what happens once a sale closes or how leases and staffing decisions get sorted out later.
The bankruptcy court will ultimately decide who ends up owning these 61 restaurants and under what terms. Until a judge approves a final sale, Bloomin’ Brands remains the leading bidder, not the confirmed buyer, and each location’s fate stays tied to that court process.
🤠 Cerca Trova Restaurant Group Holdings, a franchisee of Outback Steakhouse owner Bloomin' Brands, filed for Chapter 11 bankruptcy protection on Monday.
▪️ The company, which does business as Out West Restaurant Group, operates 61 Outback Steakhouse restaurants in the western… pic.twitter.com/Hz2rkzOY6n
— DailyJobCuts . com – Layoffs / Job / Economy News (@dailyjobcuts) November 2, 2026
For a brand as recognizable as Outback, the distinction between the corporate parent and an independent franchisee rarely makes headlines. This case is a reminder that the steakhouse down the street can be owned by a separate company entirely, one now navigating its own financial reckoning in federal court.
Sources:
foxbusiness.com, sec.gov, mlive.com, marketwatch.com, tradingview.com, stocktitan.net, finance.yahoo.com, restaurantbusinessonline.com, capstonepartners.com
