Bloomin' Brands to Acquire 61 Bankrupt Outback Steakhouse Locations

Bloomin' Brands, the parent company of Outback Steakhouse, has entered an agreement to acquire 61 restaurant locations for $26.3 million following a Chapter 11 bankruptcy filing by franchisee Out West Restaurant Group. The San Diego-based operator, also known as Cerca Trova Restaurant Group, filed for protection in Delaware on November 2, 2026, citing nearly $320 million in secured debt.

Chief Executive David Goronkin attributed the collapse to converging pressures, including declining guest traffic and rising costs for labor and food. He specifically noted the impact of California's minimum wage laws and the increasing cost of beef since 2022. The company's total debt grew from $269 million in late 2020 to $449 million this year, a trajectory the company stated was "fatally undermined" by the COVID-19 pandemic.

Bloomin' Brands is serving as the stalking-horse bidder in the court-supervised sale, with a proposed closing date of January 31, 2027. To maintain operations during the proceedings, the parent company provided $5.5 million in non-interest-bearing debtor-in-possession financing. While Bloomin' Brands characterized the bankruptcy as an "isolated incident" that would not immediately affect guests or employees, the company's shares fell 6.15% to $10.23 following the announcement.

The acquisition may allow Bloomin' Brands to take direct control of a majority of the brand's franchised locations in the United States. The affected restaurants, located across California, Arizona, Nevada, Colorado, and New Mexico, will remain open during the legal process.