Out West Restaurant Group Files for Chapter 11 Bankruptcy

Out West Restaurant Group, a San Diego-based operator of 61 Outback Steakhouse locations, filed for Chapter 11 bankruptcy protection in Delaware on November 2, 2026. The company reported nearly $320 million in secured debt and stated it was "fatally undermined" by the COVID-19 pandemic.

Bloomin’ Brands, the parent company of Outback Steakhouse, is seeking to acquire the bankrupt locations as the stalking-horse bidder. The parent company has already provided $5.5 million in debtor-in-possession financing and submitted a bid of $26.3 million to acquire the assets, though the final amount remains subject to adjustments based on vendor liabilities.

Bloomin’ Brands characterized the bankruptcy as an "isolated incident" that will not impact its broader corporate operations. The affected restaurants will remain open while legal proceedings continue. Major unsecured creditors include Pfgc, Inc., with a claim exceeding $4 million, and Matern Law Group, with a claim exceeding $1.6 million.