An Outback Steakhouse franchisee that recently closed several restaurants has filed for Chapter 11 bankruptcy protection, putting 61 remaining locations across the western United States up for sale.
Cerca Trova Restaurant Group Holdings, which operates as Out West Restaurant Group, filed for bankruptcy Nov. 2 in the U.S. Bankruptcy Court for the District of Delaware, according to court records. The independently owned franchisee operates Outback restaurants in five western states.
The bankruptcy filing follows the closure of 10 Outback restaurants in October and three additional locations earlier this year, according to Fast Company. The company has faced years of financial challenges, including declining customer traffic and rising food and labor
costs.
Bloomin' Brands, the parent company of Outback Steakhouse, has agreed to make an initial $26.3 million offer to acquire Out West's assets, including its remaining restaurant operations. The proposed transaction is subject to bankruptcy court approval and potentially higher offers from competing buyers, according to the company's SEC filing.
Which Outback Steakhouse locations recently closed?
Out West closed 10 restaurants between Oct. 11 and Oct. 25, according to Fast Company. The franchisee said the restaurants were operating at a loss or generating insufficient revenue to cover occupancy expenses.
The closures affected four states:
- Arizona: Tucson and Mesa
- California: Buena Park, Valencia and Foothill Ranch
- Colorado: Colorado Springs, Highlands Ranch, Aurora and Littleton
- Nevada: Reno
The 10 closed restaurants are excluded from Bloomin' Brands' proposed acquisition. Out West also closed three underperforming locations earlier in 2026, Fast Company reported.
USA TODAY has reached out to Out West Restaurant Group and Bloomin' Brands for comment.
Why did the Outback Steakhouse franchisee file for bankruptcy?
Out West's financial difficulties date back to 2018, when declining restaurant traffic began affecting its revenue, according to The Independent. The pandemic further weakened the business, with revenue falling approximately 35% in 2020, according to court filings cited by the publication.
The franchisee also pointed to rising food and labor expenses, including increases in state and local minimum wages in California, where more than half of its employees work, Bloomberg reported.
The company's debt increased to approximately $449 million from $269 million in late 2020, according to Bloomberg.
What happens to the remaining Outback Steakhouse restaurants?
Out West intends to continue operating its remaining restaurants during the bankruptcy proceedings, according to Bloomin' Brands' SEC filing.
Bloomin' Brands also agreed to provide up to $5.5 million in interest-free debtor-in-possession financing to help support the franchisee's operations. Any financing drawn would reduce the proposed purchase price.
The company is expected to serve as the initial, or "stalking horse," bidder in the court-supervised sale. This means its offer establishes a starting point that other potential buyers can attempt to exceed.
Outback Steakhouse itself has not filed for bankruptcy. As of June 2026, the chain had approximately 659 U.S. restaurants, including 544 company-operated locations and 115 franchised restaurants, according to Bloomberg.
If the acquisition is approved, Bloomin' Brands would take direct control of Out West's remaining restaurants, potentially bringing more than half of Outback's U.S. franchised locations under its ownership.
Bloomin' Brands also owns Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar.
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com or on X @athompsonUSAT
This article originally appeared on USA TODAY: Outback Steakhouse franchisee files for bankruptcy after closures
