Out West Restaurant Group and Cerca Trova Restaurant Group filed for Chapter 11 bankruptcy on Monday, and Outback Steakhouse agreed to buy 61 of their restaurants for $26.3 million. The stalking horse deal also covers substantially all of Out West’s other assets, putting the brand’s franchise map under pressure just as the company tries to keep operations steady.
That is why the Outback Steakhouse Locations Closures List is being searched now: the filing and sale could shift direct control of a majority of the chain’s U.S. franchised locations to Bloomin’ Brands if the court process runs through as planned. Bloomin’ Brands said it is providing up to $5.5 million in debtor-in-possession financing, which gives the parent company more influence over how the case moves while the restaurants remain open and the sale is sorted out.
Bloomin’ Brands said it is working closely with Out West, its lenders and other stakeholders throughout the Bankruptcy Court-supervised process, with a focus on keeping restaurant operations stable, supporting Team Members and continuing to serve guests. It also said buying the restaurants would give it direct operational insight, let it invest in the units through its development initiatives and reduce disruption for guests and employees. The numbers show why that matters: Bloomin’ Brands’ latest 10-Q said Outback Steakhouse has about 115 franchised restaurants in the U.S. and roughly 544 company-owned units.
The geography of the filings underscores how concentrated the business is in the Southwest. Cerca Trova’s Chapter 11 filing listed locations in Arizona, Nevada, New Mexico and Colorado, while Out West’s filing listed significant creditors in California. That concentration makes the 61-store package more than a routine asset sale; it is a transfer that could reshape who controls a large share of the brand’s franchise system.
There is also a larger contradiction inside the clean language of stability. Bloomin’ Brands says the deal is meant to maintain operations and limit disruption, but it is still moving toward direct control of a majority of Outback Steakhouse’s U.S. franchised locations. The chain has already been through a reset: last year, it closed a number of underperforming locations ahead of a multi-stage turnaround plan, then invested heavily in steak quality and eventually ended a streak of same-store sales declines. This bankruptcy process now tests whether that turnaround can hold while one of its biggest franchise groups changes hands in court.
The next step is the Bankruptcy Court, where the stalking horse bid can be tested, topped or approved as the case develops. If the deal stands, Bloomin’ Brands will not just be protecting a troubled franchise network; it will be pulling a major slice of Outback Steakhouse’s U.S. franchised business back under direct control.
