Outback Steakhouse Franchisee Files Bankruptcy After Costs Swell
Out West Restaurant Group, also known as Cerca Trova Restaurant Group Holdings, filed for Chapter 11 bankruptcy this week. The franchisee operates 61 Outback Steakhouse locations across five western U.S. states. Parent company Bloomin Brands has agreed to acquire substantially all of the operator's assets through a court-supervised sale for $26.3 million. The filing follows a period of rising costs and the closure of 13 restaurants. Cerca Trova was previously the largest franchisee for the brand.
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- ✓ Out West Restaurant Group, formally known as Cerca Trova Restaurant Group Holdings, filed for Chapter 11 bankruptcy.
- ✓ The franchisee operates 61 Outback Steakhouse restaurants in the western United States.
- ✓ Bloomin Brands has agreed to purchase the franchisee's assets for $26.3 million.
- ✓ Cerca Trova was once the largest franchisee for Outback Steakhouse.
What changed
Bloomin Brands offered $26.3 million to acquire the 61 restaurants following the Chapter 11 filing by Out West Restaurant Group.
Live updates
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Bloomin Brands to Buy 61 Outback Steakhouse Locations After Franchisee Bankruptcy
Out West Restaurant Group, also known as Cerca Trova Restaurant Group Holdings, filed for Chapter 11 bankruptcy this week. The franchisee operates 61 Outback Steakhouse locations across five western U.S. states. Parent company Bloomin Brands has agreed to acquire substantially all of the operator's assets through a court-supervised sale for $26.3 million. The filing follows a period of rising costs and the closure of 13 restaurants. Cerca Trova was previously the largest franchisee for the brand.
Why it matters
This acquisition allows Bloomin Brands to regain direct control of a significant portion of its western U.S. footprint. The move highlights the financial pressure rising operational costs have placed on independent restaurant operators.
What is confirmed
- Out West Restaurant Group, formally known as Cerca Trova Restaurant Group Holdings, filed for Chapter 11 bankruptcy.
- The franchisee operates 61 Outback Steakhouse restaurants in the western United States.
- Bloomin Brands has agreed to purchase the franchisee's assets for $26.3 million.
- Cerca Trova was once the largest franchisee for Outback Steakhouse.
Still unconfirmed
- The franchisee closed 13 restaurants prior to the bankruptcy filing.
What to watch next
- Court approval of the asset sale to Bloomin Brands
- Final determination of the bankruptcy restructuring terms
confidence 100%Sources used for this update (13)
- baynews9.com — Tampa Electric files plan to protect customers from data center costs
- Bloomberg.com — Outback Steakhouse Franchisee Files Bankruptcy After Costs Swell
- Yahoo Finance — Outback Steakhouse restaurant franchisee files for Chapter 11 bankruptcy
- Nation’s Restaurant News — A 61-unit Outback Steakhouse franchisee files for bankruptcy
- Quartz — Outback's once-biggest franchisee Cerca Trova files for bankruptcy
- Investing.com UK — Form 8K Bloomin Brands Inc For: 2 November By Investing.com
- finance.yahoo.com — Is Outback Steakhouse closing? Chapter 11 bankruptcy explained
- finance.yahoo.com — Outback Steakhouse franchisee files for bankruptcy after closures
- www.fsrmagazine.com — 61-Unit Outback Steakhouse Franchisee Files for Bankruptcy
- 1851franchise.com — Outback Franchisee Files for Bankruptcy Amid Rising Costs
- www.aol.com — Outback Steakhouse Franchisee Files for Bankruptcy After ...
- thebeltwayreport.com — West Coast Outback Steakhouse Operator Files for Bankruptcy ...
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