Out West Restaurant Group, a San Diego-based Outback Steakhouse franchisee with 61 restaurants in five Western states, filed for Chapter 11 bankruptcy on Monday. Bloomin' Brands agreed to buy substantially all of its assets through a court-supervised sale, with a $26.3 million bid and $5.5 million in financing. The restaurants are to stay open.
Out West Restaurant Group, a San Diego-based Outback Steakhouse franchisee, filed for Chapter 11 bankruptcy. The company operates 61 Outback restaurants in five Western states. The filing came on Monday, and parent company Bloomin' Brands agreed to purchase substantially all of the operator's assets through a court-supervised sale.
Bloomin' Brands has agreed to serve as a stalking horse bidder for substantially all of Out West's assets. Outback's parent is working to acquire the bankrupt locations and expects to be named the stalking-horse bidder. Bloomin' has entered a $26.3 million bid, with some stipulations, to acquire Out West's assets. The bid is intended to mitigate any disruption to the restaurants' services.
Bloomin' is also providing $5.5 million in debtor-in-possession financing. The company agreed to provide up to that amount in interest-free financing to support operations through the bankruptcy.
According to Bloomin', the filing does not immediately affect restaurant operations, and Out West plans to continue operating during the case. Out West's restaurants will remain open during the bankruptcy proceedings.
