Outback Steakhouse Closing Stores After Franchisee Bankruptcy

outback steakhouse closing stores: what triggered the move

Outback Steakhouse parent company Bloomin' Brands announced a plan to buy 61 restaurants after its biggest western franchisee, Out West Restaurant Group, filed for Chapter 11 bankruptcy protection in Delaware. The filing, made on Monday, sets the stage for the closure or transfer of the affected outlets.

outback steakhouse closing locations across the West

Out West, linked to the Cerca Trova Restaurant Group, operates Outback locations in California, Arizona, Nevada, Colorado and New Mexico. Those states host the majority of the 61 restaurants slated for acquisition, though the exact list of individual sites has not been released.

outback steakhouse location closures list – what is known

While a complete location closures list is still pending, Bloomin' Brands confirmed that the transaction will bring the franchisee‑run sites under corporate control if the court approves the sale. The company described the deal as a "stalking‑horse" offer, meaning other bidders could still compete.

financial terms of the acquisition

Bloomin' Brands agreed to purchase the assets for roughly $26.3 million, subject to adjustments and the assumption of certain liabilities. In addition, the parent company will extend up to $5.5 million of interest‑free debtor‑in‑possession financing to help Out West keep the restaurants operating while the bankruptcy case proceeds.

impact on employees and diners

According to the SEC filing, the bankruptcy involves only the franchisee‑operated restaurants, not Bloomin' Brands' corporate‑owned locations. The company stated that the deal should not affect customers, staff or day‑to‑day operations at the stores involved.

next steps for the franchisee and Bloomin' Brands

The sale must be approved by the bankruptcy court. If approved, Bloomin' Brands will assume control of the 61 locations, potentially integrating them into its existing portfolio that also includes Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar. Until then, Out West plans to continue operating its restaurants throughout the Chapter 11 process.

For a broader view of how corporate restructurings affect market dynamics, see Understanding Recent Market Shifts and QQQ Stock Trends.

Sources: Fox Business, Restaurant Dive, Fast Company.